The Indian benchmarks are facing a considerable selling pressure as tensions in the middle east escalates. All major indices across the globe are down as investors flee for safety. The January futures contract of the Nifty 50 index opened lower at 12,201 versus its previous close of 12,256.

The market breadth indicates a clear bearish bias as the advance-decline ratio stands at 4-46. Also, all the sectoral indices except the Nifty IT index (remains flat) are trading lower confirming abroad based selling. The top loser is the Nifty PSU bank index, down by a little over 3 per cent followed by the Nifty metal index, down by 2 per cent. The volatility has shot up in today’s session as indicated by India VIX- the volatility index. It is up by nearly 14 per cent so far in today’s session.

The January futures contract of the Nifty index is currently trading at 12,115 and it has breached below the key support at 12,200. Thus, the possibility of further decline seems higher. Hence, traders can take a bearish stance and sell the contract on intraday rallies with stop-loss at 12,180.

Strategy: Sell on intraday rallies with stop loss at 12,180

Supports: 12,100 and 12,055

Resistances: 12,130 and 12,160

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