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Nifty 50 January Futures (18,335)
Equity benchmarks BSE Sensex and NSE Nifty are trading higher. Both the indices are up about 0.2 per cent each. Sensex is trading at 61,223, while Nifty 50 is at 18,218. The strong bounce from the intraday lows on Thursday is very significant. It indicates strong buying interest at lower levels. This makes 18,000 a very important support for the Nifty. As long as the the Nifty sustains above 18,000, the chances are high for it to rise towards 18,400-18,500 in the coming days.
Global cues
In Asia, barring the Kospi (2,236) which is down 1.9 per cent, major indices are in green. Nikkei 225 (26,194), Hang Seng (19,903) and Shanghai Composite (3,092) are up in the range of 0.4-0.8 per cent.
In the US, the Dow Jones Industrial Average (33,220.80) rose sharply on Thursday within its 32,500-33,500 range. We can expect the Dow Jones to remain in the sideways range for some more time. Broadly, the bias is positive for the Dow to see an upside breakout of the 32,000-33,500 range and see a rise to 34,000 and higher levels in the coming weeks.
Nifty 50 futures
The Nifty 50 January futures (18,335) is up 0.24 per cent. Immediate support is at 18,300. As long as the contract trades above this support, the outlook will be bullish and the changes will be high for the Nifty 50 January Futures contract to break 18,400 and rise to 18,500 in the next few sessions.
This bullish outlook will get negated if the contract declines below 18,300. In that case, a fall to 18,200-18,100 can be seen.
Trading strategy
Traders can go long now and accumulate on dips at 18,310. Keep the stop-loss at 18,280. Trail the stop-loss up to 18,355 as soon as the contract moves up to 18,380. Move the stop-loss further up to 18,385 when the contract touches 18,405 on the upside. Book profits at 18,420.
Supports: 18,300, 18,200
Resistances: 18,400, 18,500
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