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Nifty 50 January Futures (12,240)
The Indian benchmarks are trading slightly higher following the positive cues from the US market. However, the price action looks sluggish as there is no definite trend in the indices. Similarly, the January futures contract of the Nifty 50 index has not changed much today and is hovering around the important level of 12,250.
The market breadth of the Nifty index does not indicate any bias as the advance-decline ratio is almost equally split at 26-24. There is not much volatility which can be seen in India VIX, the volatility index. It remains unchanged at 11.65 levels compared to yesterday. Most of the sectoral indices, like the benchmarks, seem to be less active today. The Nifty IT is the top performer, up by nearly 0.5 per cent whereas the Nifty metal index is the worst performer, down by 0.4 per cent.
Though the January futures contract of the Nifty index has been declining since it tested the crucial resistance at 12,350, the overall trend is bullish. Currently trading at 12,240, the contract has a support band between 12,200 and 12,230. Hence, traders are recommended to initiate long positions on declines with stop loss at 12,190.
Strategy: Initiate long positions with stop loss at 12,190
Supports: 12,230 and 12,200
Resistances: 12,300 and 12,350
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