Nifty 50 January Futures (14,049) Taking positive cues from the bullish US markets, the Sensex and Nifty 50 started the session with a gap up open. The Dow Jones Industrial Average had advanced 0.65 per cent to 30,606 and S&P 500 index had also climbed 0.64 per cent to 3,756 levels last session. The Sensex and the Nifty 50 have advanced 0.35 per cent each so far on the back of buying interest. The market breadth of the Nifty 50 is biased towards advances.

On the other hand, the India VIX has slumped 3.8 per cent to 20.2 implying a decline in volatility. Both the Nifty mid and smallcap indices have gained 0.87 and 0.8 per cent respectively. Top sectoral gainers are Nifty PSU Bank and media index that have climbed 1.6 per cent and 1 per cent respectively. The Nifty PVT Bank and realty indices are marginally hovering in the negative territory.

The Nifty 50 January contract started the session almost on flat note, opening at 14,002. Recording an intraday low at 13,997 the contract continued to trend upwards. The contract has marked an intraday high at 14,058. As long as the contract trades above 14,000 the near-term stance will remain positive.

Traders can make use of intraday dips to buy the contract while maintaining a stop-loss at 14,000. A decisive rally above 14,060 can take the contract higher to 14,080 and then to 14,100. Next resistances above these levels are at 14,125 and 14,150 levels. Key supports below 14,000 are placed at 13,970 and 13,950 levels.

Strategy: Buy on declines with a fixed stop-loss at 14,000 levels.

Supports: 14,000 and 13,970

Resistances: 14,060 and 14,080

BL Research Bureau

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