Nifty Call: Go short if contract declines below 13,900

Nifty 50 December Futures (13,935) The Sensex and Nifty 50 started the session on a flat note amid mixed Asian markets. The Nikkei 225 fell 0.45 per cent to 27,444 while the Hang Seng index has gained 1.4 per cent to 26,948 in today's session. Both the domestic equity indices are vacillating between the positive and negative territory with a negative bias. The Sensex and Nifty 50 have slipped 0.10 per cent each so far. The market breath of the Nifty 50 is marginally biased towards advances.

The India VIX has gained 2 per cent to 21.2 levels indicating increase in volatility. The Nifty mid and smallcap indices are mixed today. The Nifty midcap has fallen 0.2 per cent whereas the smallcap index has climbed 0.28 per cent. Among the sectoral indices, the top gainers are the Nifty Auto (0.6 per cent) and the Nifty metal (0.3 per cent). Selling interest is seen in the Nifty PSU Bank and PVT Bank that have fallen 0.9 per cent and 0.6 per cent respectively.

The Nifty 50 December month contract started the session with a gap-up open at 13,979 and recorded an intraday high at 13,985 levels. But witnessing selling interest at higher level, the contract pared the intraday gains and now trading flat at 13,935 levels. The contract is largely range-bound between 13,900 and 13,950 levels. Traders can go short with a fixed stop-loss only if the contract declines below 13,900 levels. Supports below 13,900 are at 13,870 and 13,850 levels. Next supports below 13,850 are at 13,825 and 13,800 levels. Resistances above 13,950 are at 13,980 and 14,000 levels.

Strategy: Go short only if the contract falls below 13,900 levels with a fixed stop-loss

Supports: 13,900 and 13,870

Resistances: 13,950 and 13,980

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