Nifty 50 December Futures (13,558)

Amid mixed Asian markets, the Sensex and the Nifty 50 started the session with a gap-up open. But, the benchmark indices began to decline witnessing selling interest and slipped into the negative territory. The Nikkei 225 is up by 0.3 per cent to 26,732 while the Hang Seng index has declined 0.5 per cent to 26,367 levels in today's session. The domestic equity indices - the Sensex and the Nifty 50 - are wavering between positive and negative territory. The market breadth of the Nifty 50 is biased towards advances. The India VIX has jumped 3.4 per cent to 19.4 indicating increase in volatility. Both the Nifty mid and small-cap indices have advanced 0.5 per cent each. Selling interest is seen in the Nifty Auto, IT and Realty sectors. Top sectoral gainers are Nifty media and Nifty PSU Bank indices that have climbed 1.7 per cent and 1.22 per cent respectively.

The Nifty 50 December month contract started the session with a gap-up open at 13,550 and recorded an intraday high at 13,612. Experiencing selling interest at higher levels, the contract started to decline and marked an intraday low at 13,490. The contract tests a key resistance at 13,560. But since the overall trend is up, traders can initiate fresh long on declines with a stop-loss at 13,525 levels. A rally above 13,560 can test resistances at 13,580 and 13,600 levels. Resistances above 13,600 are at 13,620 and 13,650 levels. Key supports below 13,500 are at 13,475 and 13,450 levels.

Strategy: Go long with a fixed stop-loss at 13,525 levels

Supports: 13,500 and 13,475

Resistances: 13,580 and 13,600

BL Research Bureau

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