Nifty Call: Go short if fall is below 13,165 levels

Nifty 50 December Futures (13,183) After a gap up open, Sensex and Nifty 50 started to trade range-bound with a negative bias. The Asian markets are mixed today; the Nikkei 225 is flat at 26,809 whereas the Hang Seng index has climbed 0.6 per cent to 26,698 levels. Both the Sensex and Nifty 50 have marginally gained by 0.2 per cent each so far. The market breadth of the Nifty 50 is biased towards advances. The volatility index - India VIX - has slumped 4.6 per cent to 18.9 levels indicating stability in the markets. Both the Nifty mid and small-cap indices have advanced 0.5 per cent and 0.7 per cent respectively. The Nifty PSU Bank index is the top sectoral index gainer which has jumped 4.9 per cent followed by Nifty media and metal indices that have rallied 2.4 per cent and 2.2 per cent correspondingly. Selling interest is seen in Nifty Financial Service and IT indices which have slipped about 0.3 per cent each.

Following a gap up open at 13,210, the December month Nifty 50 futures contract marked an intraday high at 13,228 and began to decline. It recorded an intraday low at 13,162 and started to move sideways. On the upside, the key resistance at 13,210 is limiting the rally. A decisive fall below the immediate support level of 13,165 can drag the contract down to 13,140 and then to 13,100. In that case, traders with a near term view can go short with a fixed stop-loss. Key resistances above 13,210 are at 13,225 and then at 13,250.

Strategy: The contract is range-bound with a negative bias. Go short only on a fall below 13,165 levels

Supports: 13,165 and 13,140

Resistances: 13,210 and 13,225