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Nifty 50 December Futures (10,456) After a big gap-down opening, both the Nifty as well as Sensex made a huge comeback following the Gujarat and Himachal Pradesh poll results showing a BJP victory. Gains in other Asian markets also boosted sentiment. The Nikkei 225 surged 1.5 per cent and the Hang Seng Index rose 1 per cent.
The Nifty December futures contract started the session with a huge gap-down, opening at 10,201, and plunged to an intra-day low of 10,060. However, the contract bounced back recovering its intra-day loss and entered positive territory, breaching a key resistance at 10,360 levels. The contract subsequently surpassed key resistance at 10,400 and recorded an intra-day high of 10,459.
The near-term outlook will remain bullish as long as the contract trades above 10,400 levels. Traders with a near-term view can buy the stock with a stop-loss at 10,390 levels. The contract can encounter resistances at 10,475 and 10,500 levels. A further rally beyond 10,500 can take the contract higher to 10,525 and 10,550 levels. Key supports below 10,400 are placed at 10,360 and 10,330 levels.
Strategy: Make use of dips to buy the contract with a fixed stop-loss at 10,390 levels.
Supports: 10,400 and 10,360
Resistances: 10,475 and 10,500
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