Nifty 50 December Futures (13,570)
Even as the Asian equity markets look mixed, the Indian market is bullish and the benchmark indices-- Nifty 50 and Sensex, both marked their respective lifetime highs today and so far, they have gained by about 0.6 per cent. In Asia, the early rise ASX 200 and the Nikkei 225 posted a loss of 0.6 per cent and 0.4 per cent, respectively. Whereas, the Hang Seng and the KOSPI are up by 0.5 per cent and 0.9 per cent, respectively.
Since the sentiment is positive, the market breadth of Nifty 50 index is positively inclined as the advance-decline ratio is at 36-14. Also, the volatility has eased as indicated by India VIX, the volatility index. It is down by about 0.6 per cent to 18.6.
Reflecting on the benchmarks, all mid- and small-cap indices too have gained. They are up between 0.5 per cent and 1.1 per cent. Also, barring the Nifty pharma index (down by 0.2 per cent), all the sectoral indices are in the green. The Nifty PSU bank index is the top gainer, up by 1.6 per cent followed by the Nifty media index, up by 1.5 per cent.
Like the underlying Nifty 50 spot index, the December futures contract opened marginally higher at 13,530 against yesterday’s close of 13,524. The contract then rallied to mark a fresh high of 13,599 before softening towards the current level of 13,575. Since the major trend is bullish and the contract breached the key barrier at 13,500, it is most likely to stay bullish for the rest of the day. But since 13,600 can be a resistance, traders can buy the contract with stop-loss at 13,500 if only it breaks out of 13,600.
Above 13,600, the contract can face hurdles are: 13,650 and 13,700; whereas the support levels can be spotted at 13,550 and 13,520.
Strategy: Go long if the contract breaks out of 13,600
Supports: 13,550 and 13,520
Resistances: 13,600 and 13,650