Nifty call: Buy on declines with stop-loss at 12,050

Nifty 50 November futures (12,110)

The domestic bellwether indices - the Sensex and the Nifty 50 - started the session with a gap-up open, taking positive cues from the global markets. The US indices - Dow Jones and S&P 500 - had gained 1.3 per cent and 2.2 per cent respectively in the last session. Asian markets commenced the session on a strong footing - the Nikkei 225 has advanced 1.7 per cent to 24,105 and the Hang Seng index has jumped 2.8 per cent to 25,588 levels in today's session.

Both the Nifty 50 and the Sensex have advanced about 1.5 per cent each so far. The market breadth of the Nifty 50 is biased towards advances. On the other hand, the India VIX has plunged 8.6 per cent to 21.1 levels. The Nifty mid and small-cap indices have gained 1.3 per cent and 1.6 per cent respectively. All the sectoral indices are hovering in positive territory and the top gainers are the Nifty media and metal indices that have gained 3.9 per cent and 3 per cent respectively.

The Nifty 50 November month contract commenced the session with a gap-up open at 12,089, decisively breaking above the key barrier of 12,000. After recording an intra-day low at 12,031, the contract resumed the uptrend and the near-term outlook is bullish. So, make use of intraday dips to buy the contract with a stop-loss at 12,050.

A strong rally above the immediate resistance level of 12,120 can take the contract higher to 12,140 and 12,160 levels. Key supports below 12,050 are placed at 12,030 and 12,000.

Strategy: Make use of intra-day declines to buy with a stop-loss at 12,050

Supports: 12,050 and 12,030

Resistances: 12,120 and 12,140

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