Technical Analysis

Nifty 50 December Futures (17,190)

Akhil Nallamuthu | | Updated on: Dec 07, 2021
image caption

traders can go long for intraday with stop-loss at 17,140

BL Research Bureau

Following the bullish cues from the Asian market, the Indian benchmarks have open with a gap-up and have rallied so far. The Nifty 50 at 17,140 and the Sensex at 57,535 are up by 1.4 per cent each. Among the Asian majors, the Nikkei 225 is up by 2.2 per cent, Hang Seng by 1.9 per cent and ASX 200 by nearly 1 per cent.

Corroborating the positive inclination, the market breadth of the Nifty i.e., the advance-decline ratio stands at 47-3. The mid- and small-cap indices are up between 0.8 and 1.3 per cent and all sectoral indices are in the green. These are indications of broad-based buying.

The Nifty Metal and Private bank index are the top gainers, up by 2.1 and 2 per cent, respectively.

Futures: As the underlying Nifty 50 has been positive since open, the December futures of the index, which opened higher (at 17,053 versus yesterday’s close of 16,957), has been rallying. Currently trading at around 17,200, it is up by 1.4 per cent so far. Notably, 17,200 can be a resistance for the contract. Above this level, 17,250 and 17,300 are the resistance levels. Support from the current levels can be seen at 17,100 and 17,000.

Since the Asian markets are positive and a broad-based buying can be seen in the domestic market, the Nifty futures seems to be positioned itself for further upside. But 17,200 is hurdle.

So, traders can go long for intraday with stop-loss at 17,140, if the contract breaches 17,200. Exit the longs at 17,300.

Strategy: Go long for intraday with stop-loss at 17,140, if the contract breaches 17,200. Exit the longs at 17,300.

Supports: 17,100 and 17,000

Resistances: 17,200 and 17,250

Published on December 07, 2021

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