Nifty 50 December Futures (17,965)

After witnessing a strong sell-off on Friday, the Sensex and Nifty 50 have got a breather today. While the BSE Sensex is at 60,248, up 0.67 per cent, while NSE Nifty 50 is at 17,916, up 0.61 per cent.

Nifty is getting support around 17,800 as a dip below this level is getting bought. This is a positive. A test of 18,000 is possible if the current bounce sustains. It is important to see if Nifty is getting strong follow-through rise from here or not.

Otherwise, the danger of falling steeply below the 17,800-levels will remain alive. So, the price action will need a close watch to get a clarity on the move.

Global cues

In Asia, Nikkei 225 (26,405), Kospi (2,319) and Shanghai Composite (3,067) are all up in the range of 0.2-0.7 per cent.

In the US, the Dow Jones Industrial Average (33,203.93) has risen and sustaining well above 32,500. Broadly, the Dow has been oscillating in the range of 32,500-33,500. The bias is bullish to see an upside break above 33,500 and rise to 34,000 and higher levels in the coming days.

Nifty 50 Futures

Nifty 50 December Futures (17,965) is up 0.55 per cent. For now, the contract is getting good support near 17,830. Also, an intraday support is at 17,930. If the contract manages to sustain above this support level of 17,930, it can break above 18,000. Such a break can take the Nifty 50 December Futures contract can rise to 18,080-18,100 in the coming sessions.

The Nifty 50 Futures contract will come under pressure only if it declines below 17,930. In that case it can fall back to 17,830 again.

Trading strategy

Traders with high-risk appetite can consider taking long positions now. Accumulate on dips at 17,945. Keep a stop-loss at 17,905. Trail the stop-loss up to 17,980 as soon as the contract moves up to 18,010. Move the stop-loss further up 18,025 when the contract touches 18,045 on the upside. Exit the longs at 18,070.

Supports: 17,930, 17,830

Resistances: 18,000, 18,080

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