The Indian benchmarks are on the rise today, following positive cues from the US market. Both the Nifty spot and the Sensex spot index are up by 0.7 per cent each. But the Asian indices are giving mixed cues; Nikkei is down by nearly 0.3 per cent and the Hang Seng is up by 1 per cent for the day.

The market breadth of the Nifty 50 index is showing bullish bias as 39 out of the 50 stocks have gained so far in today’s session. Also, all the sectoral indices are in the green, led by the Nifty PSU bank index, up by 3.1 per cent. Moreover, the market is witnessing lower volatility today as indicated by India VIX – the volatility index, which is down by 3.4 per cent to 10.75 levels. All these factors indicate a broad-based buying today.

The January futures contract of the Nifty 50 index opened a little higher at 12,228 versus its previous close of 12,195. Since the beginning of the session, the contract has been gaining and is currently trading at 12,275. The contract has rebounded exactly from 38.2 per cent Fibonacci retracement level of the previous bull trend. Thus, the bull trend might have resumed after the correction. Hence, one can take a bullish view and buy the contract on dips with stop loss at 12,230.

Strategy: Initiate long positions on dips with stop loss at 12,230

Supports: 12,250 and 12,230

Resistances: 12,300 and 12,350

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