Following positive cues from the Asian markets, the Indian benchmark indices have rallied today. The Nifty and the Sensex spot indices have gone up by 1.3 per cent so far in today’s session. Among the Asian major indices, the Nikkei has gained by 2.2 per cent whereas the Hang Seng is up by 0.3 per cent today.

Advance-decline ratio of the Nifty 50 index is at 42-8, indicating a bullish bias. Moreover, all sectoral indices, except Nifty IT index (down by 0.1 per cent), are up today led by Nifty media and Nifty PSU bank index, each gaining by 2.3 per cent. The Mid-cap and Small-cap indices too are up by over 1 per cent. These factors indicate a broad rally.

There is a significant drop in volatility, indicating an easing market sentiment. The volatility index – India VIX has dropped by nearly 10 per cent to 14.08 levels.

The January futures contract of the Nifty index opened on a strong note today at 12,181 versus its previous close of 12,063. As there are indications of substantial buying, traders can take bullish view and initiate fresh long positions on declines with stop-loss at 12,175.

Strategy: Buy on declines with stop loss at 12,175

Supports: 12,200 and 12,180

Resistances: 12,300 and 12,350

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