Nifty 50 December Futures (18,043)
Equity benchmarks BSE Sensex and NSE Nifty were volatile in early trade on Tuesday. Both the indices are trading flat now after touching intraday- highs and lows. At the time of filing this report, Sensex was at 60,577, while Nifty 50 was at 18,027.
Nifty tested its support at 17,960 and has now risen back above 18,000. If it manages to sustain above 18,000, a rise to 18,100 can be seen. A decisive break above 18,100 will pave way for a further rise to 18,200 and higher levels.
Nifty will come under pressure if it breaks below 17,960. Such a break can drag the Nifty down to 17,900 and even 17,800 again.
Global cues
Major indices in Asia are in green. Nikkei 225 (26,470), Kospi (2,322) and Shanghai Composite (3,089) are up in the range of 0.24-0.80 per cent. The US market was closed on Monday.
Nifty 50 Futures
The Nifty 50 December Futures is trading flat at 18,043. Intermediate resistance is at 18,070. A break above it can take the contract up to 18,120-18,150 and even to 18,230.
On the other hand, support is at 17,970. A break below it will increase the downside pressure. Such a break can drag the Nifty 50 December Futures contract down to 17,900 and even 17,1830.
Trading strategy
Go long only on a break above 18,070. Keep the stop-loss at 18,010. Trail the stop-loss up to 18,095 as soon as the contract moves up to 18,115. Move the stop-loss further up to 18,130 when the contract rises to 18,160. Book profits at 18,190.
Supports: 17,970, 17,900
Resistances: 18,070, 18,120
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