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BL Research Bureau
Nifty 50 December Futures (17,030)
The Indian benchmark indices have recovered well from the day’s low. Sensex and Nifty 50 fell to a low of 56,543 and 16,833 respectively and then have bounced back very well. Both the indices are trading marginally higher now. Sensex is now trading at 57,143 and Nifty is at 17,009, both up by 0.03 per cent each. Support for Nifty is at 16,800. While that holds, a rise to 17,150-17,200 is possible. A break above 17,200 will pave the way for 17,350-17,400. Sensex has support at 56,500 and has chances of rising to 58,000 in the coming sessions. However, the broader picture remains weak. As such, we would consider any rallies in the coming days as an opportunity to sell.
In Asia, barring the Hang Seng (23,224, up 0.13 per cent) all other major indices are trading in the red. Nikkei 225 (28,676), Shanghai Composite (3,612) and Kospi (3,002) are down in the range of 0.15-0.4 per cent today.
Markets could run into a broad sideways consolidation in the next two weeks as the global markets will be on the year-end holiday season and trading volumes could be muted. As such, traders may not get a strong opportunity or a big move to make money. Only small trades are possible for some time.
Futures: The Nifty 50 December (17,030) has risen back well from the day’s low of 16,842. It has support at 16,940. While above this support, there are chances for the contract to move up to 17,150-17,200 in the coming sessions. Whether the contract breaks above 17,200 or not will determine the next direction of move. On the downside, if the Nifty 50 contract breaks below 16,940 it can fall to 16,800-16,750.
Considering the year-end factor and lack of clarity on the charts, we suggest traders stay out of the market, preferrable for the whole of this week. This is suggested to avoid getting caught in muted movement.
Strategy: Stay out of the market for now and preferably for this whole week as the markets could get stuck in a narrow range on the back muted trading ahead of the year-end.
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