Nifty 50 December Futures (13,704)

The Sensex and the Nifty 50 started the session with a gap-up open and continue to trade in the positive territory amid volatility. The Nikkei 225 index is up by 0.5 per cent at 26,668 levels in today's session while the CSI 300 index is hovering flat at 5,000 levels.

Also read: Stock markets maintain bullish momentum

The domestic equity benchmark indices, the Sensex and the Nifty 50, have advanced 0.65 per cent each so far. The market breadth of the Nifty 50 is biased towards advances. The decline in the India VIX shows reduction in volatility i.e. the volatility index is down by 1.96 per cent to 20 levels.

The Nifty mid- and small-cap indices have advanced 0.3 per cent and 0.9 per cent, respectively. The top sectoral indices gainers are Nifty Bank and Nifty PVT Bank, that have gained 1.5 per cent and 1.36 per cent, respectively. Whereas selling interest is seen in the Nifty IT that has declined 1 per cent.

Also read: Daily Rupee call: INR likely to extend gains

The Nifty 50 December month contract started the session with a gap-up open at 13,675. Following an initial decline to an intraday low of 13,641, the contract reversed higher and surpassed a key resistance at 13,700. The contract has recorded an intraday high at 13,748 and slipped marginally to test 13,700.

Traders can make use of intraday dips to buy the contract while maintaining a fixed stop-loss at 13,650 levels. Continuation of the up-move can test resistance at 13,725 and then 13,750 levels. A strong rally above 13,750 can take the contract higher to 13,775 and 13,800 levels. Key supports below 13,650 are at 13,630 and 13,600 levels.

Strategy: Make use of declines to buy with a fixed stop-loss at 13,650 levels

Supports: 13,650 and 13,630

Resistances: 13,725 and 13,750

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