Taking mixed cues from the Asian markets, the domestic equity indices the Sensex and the Nifty started the session on a flat note and rallies initially. The Nikkei 225 has slipped 0.5 per cent to 23,215 while the Hang Seng index has marginally advanced by 0.15 per cent to 27,949 levels. But the domestic key indices began to decline from their intra-day high and are moving sideways with an upward bias. The market breadth of the Nifty is biased towards declines. The India VIX is hovering flat at 17.19 levels. Witnessing buying interest, the Nifty mid and small-cap indices have climbed 0.36 per cent and 0.38 per cent respectively. The metal stocks continue to witness selling interest and the nifty metal index has slumped 1.7 per cent. On the other hand, the Nifty Pharma index has advanced 0.97 per cent along with the Nifty Financial Service index which has also surged 0.97 per cent.

Following a flat open at 12,124 the Nifty January month contract slipped and has marked intra-day low at 12,091. But the contract recovered from this low and registered an intra-day high at 12,162. The contract is trading flat, testing a key resistance in the band between 12,150 and 12,160. Traders can go long on a strong rally above 12,160 with a fixed stop-loss. The contract can test next resistances at 12,180 and 12,200. An emphatic break above 12,200 can push the contract higher to 12,225 and 12,250 levels. Key supports are at 12,115 and 12,090. A decisive fall below 12,090 can drag the contract down to 12,070 and 12,050 levels. In that case, traders should avoid taking fresh long positions.

Strategy: Go long on a strong rally above 12,160 with a fixed stop-loss at 12,145 levels

Supports: 12,115 and 12,090

Resistances: 12,160 and 12,180

Related Topics
comment COMMENT NOW