Domestic benchmarks NSE Nifty 50 (18,675) and BSE Sensex (62,760) are trading in green. Both the indices are up nearly 0.4 per cent each. All the major Asian equity indices appear bullish with Nikkei (28,175), ASX 200 (7,250), Hang Seng (19,770) and KOSPI (2,395) are up in the range of 0.7– 1 per cent.

The market breadth of the Nifty 50 is showing a bullish bias as the advance/decline ratio stands at 40/10. In line with the benchmarks, all the mid- and small-cap indices are in green. Among sectoral indices, except the Nifty FMCG that is trading flat, all indices have gained. The Nifty Realty and Media are the top performing indices, up by 1.7 and 1.3 per cent, respectively.

Nifty 50 futures

The December futures of the Nifty 50 index opened today’s session higher at 18,775 versus yesterday’s close of 18,704. It is currently trading at around 18,785.

The contract is comfortably trading above an important level of 18,725 and the price action hints at further rally from the current level. While the nearest resistance is at 18,830, if Nifty futures can maintain good momentum, it can even rally towards 19,000.

On the other hand, a drop below 18,700 signals a bearish bias where we might see a decline to 18,650. Support below this level is at 18,600.

Trading strategy

Traders can consider going long at the current level of 18,785. Accumulate when price drops to 18,725. Place stop-loss at 18,680. When the contract crosses 18,830, move the stop-loss to 18,750. Liquidate at 18,900.

Note that this is an intraday trade recommendation. So, exit the position by the end of the day if either the target or recommended stop-loss is not hit.

Supports: 18,725 and 18,650

Resistance: 18,830 and 18,900

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