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Nifty 50 December Futures (13,541)
Taking bearish cues from the Asian markets, the Sensex and the Nifty 50 commenced the session in negative territory and continues to trade in the negative zone. Both the domestic indices have declined about 0.3 per cent each so far. The Nikkei 225 has fallen marginally by 0.2 per cent to 26,687, and Hang Seng index has declined 0.6 per cent to 26,233 levels in today's sessions. The market breadth of the Nifty 50 is biased towards declines, and the India VIX has climbed about 1 per cent to 19.59 levels. Witnessing selling interest, the Nifty mid and small-cap indices have declined by 0.45 per cent and 0.4 per cent respectively. Only Nifty Media and IT are marginally hovering in the positive territory. Top sectoral losers are Nifty PSU Bank and FMCG that have slumped 2.2 per cent and 1.3 per cent correspondingly.
Following a gap-down open at 13,530 the Nifty 50 December month contract continued to trend downwards. But after registering an intraday low at 13,454 the contract began to recover. It now faces a key hurdle at 13,550 levels. A strong rally above this level can take the contract higher to 13,580 and then to 13,600 levels. Hence, traders should tread with caution and go long on a strong rally above 13,550 levels with a fixed stop-loss. Key supports below 13,500 are at 13,475 and 13,450 levels.
Strategy: Go long above 13,550 levels with a fixed stop-loss
Supports: 13,500 and 13,475
Resistances: 13,550 and 13,580
BL Research Bureau
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