Nifty 50 December Futures (18,691)
Domestic benchmarks BSE Sensex and NSE Nifty have risen sharply after opening with a wide gap-down.
Sensex is up 0.3 per cent, while Nifty 50 is up 0.25 per cent.
The strong bounce from the day’s low indicates a good buying interest in the market at lower levels. It also reflects the inherent strength in the Indian benchmark indices on a day when all the Asian major indices are bleeding.
The index has risen back well after opening at the day’s low of 18,430.55. It is currently trading at 18,554. The bias is bullish, and we can see the Nifty rising to 18,600 and even higher levels eventually this week.
Global cues
Asia’s major indices are trading in red as a result of the protests in China against Covid-19 restrictions. Hang Seng (17,219) has lost 2 per cent, while Shanghai Composite index (3,066) is down 1.16 per cent. Nikkei 225 (28,128) and Kospi (2,414) are down 0.55 and 0.94 per cent, respectively.
In the US, the Dow Jones Industrial Average (34,347) was up 0.45 per cent on Friday. As long as it sustains above 34,000, the outlook is bullish for it to target 35,000 on the upside this week.
Nifty 50 Futures
The Nifty 50 December Futures (18,691) is up 0.24 per cent. The contract has risen back sharply from the day’s low of 18,566. The outlook is bullish. The Nifty 50 December Futures contract can rise to 18,800 in the coming sessions.
Immediate support is at 18,660. Below that 18,600 and 18,550 are the next important supports.
Trading Strategy
Traders with high-risk appetite can go long now and on dips at 18,670. Keep the stop-loss at 18,640. Trail the stop-loss up to 18,710 when the contract moves up to 18,740. Move the stop-loss further up to 18,750 when the contract touches 17,765 on the upside. Book profits at 18,780.
Supports: 18,660, 18,600
Resistances: 18,800, 18,900