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Nifty 50 December Futures (10,276) Following the US markets rally, stocks in Japan, Australia and Hong Kong rose in today's trading session and extended the positive momentum.
The Nikkei 225 index has surged 313 points or 1.4 per cent to 22,811 and the Hang Seng index has added 334 points or 1.2 per cent to trade at 28,637. The MSCI AC Asia Pacific index has gained 0.4 per cent to trade at 167.9 levels.
This strong rally in the global market has kept the bullish momentum going in the domestic markets. Both the Nifty and the Sensex started the session with a gap-up open and continue to extend their rally. The market breadth of the Nifty index is biased towards advances.
The Nifty futures contract also began the session on a positive note with a gap-up open at 10,220. After recording an intra-day low of 10,211, the contract resumed its uptrend and breached the key resistance at 10,250. The near-term outlook is bullish for the contract. It can extend the up-move and test resistance at 10,300.
Traders with a near-term view can buy the contract on declines with a stop-loss at 10,240 levels. A strong rally beyond 10,300 can push the contract higher to 10,330 and then to 10,350. On the other hand, key supports are pegged at 10,250 and 10,220. An emphatic downward breach of 10,200 can bring back selling pressure and pull the contract down to 10,180 and 10,150 levels.
Strategy: Buy the contract on dips with stop-loss at 10,240
Supports: 10,250 and 10,220
Resistances: 10,300 and 10,330
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