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Nifty 50 January futures (12,355)
The Nifty index has been trading flat so far today; so has the Sensex. The Asian indices seem to be giving mixed cues as the Nikkei is up by 0.75 per cent, whereas the Hang Seng is down by 0.7 per cent.
The market breadth of the Nifty index hints at a positive bias, as the advance-decline ratio is at 37-12. Volatility has dropped as shown by the India VIX, the volatility index. The index has come down by a little over 2 per cent to 13.96 levels. Among the sectoral indices, the Nifty metal index is the top performer, up by one per cent. The Nifty private bank index is the top loser, down by 0.25 per cent.
The January futures contract of the Nifty 50 index opened flat at 12,359 against its previous close of 12,362. The contract is currently hovering around the important level of 12,350, and seems to be consolidating between 12,324 and 12,369. So, unless it moves decisively out of the range, the next leg of trend cannot be confirmed; the direction of the break could decide the upcoming trend. Thus, it is recommended that traders wait for the contract to breach either 12,324 or 12,369 before initiating fresh positions.
Strategy: Tread with caution as index trades at crucial trend deciding levels
Supports: 12,324 and 12,300
Resistances: 12,369 and 12,400
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