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Following the positive cues from the Asian markets, the Indian benchmarks have recovered after witnessing huge decline yesterday. The Nifty spot and the Sensex spot index are up by nearly 0.7 per cent. The Nikkei and the Hang Seng index have gained 1.5 per cent and 0.25 per cent respectively. Also, the US markets closed on a positive note yesterday.
The market breadth of the Nifty 50 index hints broader buying as the advance-decline ratio is at 40-10 and, all the sectoral indices are in the green. The Nifty realty and the Nifty metal index are the top gainers, each up by 1.2 per cent so far today. The volatility has dropped significantly, indicating an ease in the market. India VIX, the volatility index has dropped by a little over 13 per cent to 14.35 levels.
The January futures contract of the Nifty 50 index opened on a front foot at 12,128 versus its previous close of 12,043. After registering an intraday high of 12,181, the contract has moderated to 12,120 levels. Thus, it seems to be attracting sellers at higher levels. Though there are indications of positive bias, the price action shows some bearishness. Hence, traders are advised to stay on the sidelines until a clear trend emerges.
Strategy: Stay on the sidelines as the market is choppy
Supports: 12,100 and 12,055
Resistances: 12,180 and 12,200
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