Nifty call: Go long above 12,350 with stop-loss at 12,300

Nifty 50 January futures (12,350)

The Indian benchmarks are in the green following the positive cues from the Asian market. The Nifty spot and the Sensex spot index have gained by 0.65 per cent each so far today. Major Asian indices, including the Nikkei and Hang Seng, have risen by 0.45 per cent and 0.85 per cent respectively.

The market breadth of the Nifty 50 index, too, ishows a bullish bias, as 36 of the 50 stocks are in the green.

Barring the Nifty auto index, all the other sectoral indices are up today, led by the Nifty IT index, up by 1.5 per cent. Also, the mid-cap and small-cap indices have been rallying in the current session. Not much volatility has been observed in today’s session. India VIX, the volatility index, is marginally higher at 14.3 levels. These factors indicate that a further appreciation from the current levels is very much a possibility.

The January futures contract of the Nifty 50 index opened at 12,330, versus its previous close of 12,290. Though the trend is bullish, the contract is hovering around an important level of 12,350 and a decisive break of that level alone will lead to a further rally. Thus, from the perspective of trading, it is recommended to buy the contract only if it breaches 12,350.

Strategy: Go long above 12,350 with stop-loss at 12,300

Supports: 12,300 and 12,250

Resistances: 12,400 and 12,450