Buoyed by easing market sentiment, the Indian equity markets are on the rise along with its global peers. While the Indian benchmarks have advance by 0.75 per cent so far today, the major Asian indices like the Nikkei and the Hang Seng have gone up by 0.45 per cent and 0.25 per cent respectively.

The market breadth of the Nifty 50 index, with an advance-decline ratio of 42-8, indicates a substantial bullish bias. Also, all sectoral indices are in the green, hinting a broad-based buying. The Nifty metal index is the top gainer, up by 2 per cent followed by the Nifty realty index, up by 1.75 per cent. The mid-cap and small-cap indices have also gained in today’s session. Volatility remains the same compared to yesterday’s session according to India VIX, the volatility index. It remains largely unchanged at 14 levels.

The January futures contract of the Nifty 50 index opened higher at 12,294 versus its previous close of 12,269. After registering an intraday high of 12,357, it is currently trading at 12,340. Though the contract is in an upward trend, 12,350 levels can act as a resistance which might cap the upside. One cannot reject the possibility of profit-booking at current levels, which can drag the index temporarily. For the contract to continue its rally, it must decisively breakout of the resistance at 12,350. Thus, traders are recommended to wait and initiate fresh long positions only if the contract breaks out of that resistance.

Strategy: Initiate fresh longs above 12,350 with stop-loss at 12,300

Supports: 12,300 and 12,250

Resistances: 12,400 and 12,450

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