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Nifty 50 has begun the truncated week by opening at 21,365.20 versus Friday’s close of 21,349.40. The index moved to 21,420 at the end of the first hour of trade.
The advances/ declines ratio provides Nifty 50 a positive bias as it stands at 41/9. All mid- and small-cap indices, too have opened the week on the front foot and are in the green.
Also, all the sectoral indices, barring Nifty IT (down 0.5 per cent), have advanced today. Nifty Metal, up 1.2 per cent, and Nifty Oil & gas, up 1 per cent, are the top gainers.
Nifty 50 futures
The December futures contract of Nifty 50 opened today’s session almost flat at 21,409 as against last week’s close of 21,402.3. It is now trading at 21,460, up 0.3 per cent.
The current level of 21,460 is a hurdle. If this level is taken out, the contract can rally to 21,575. A breakout of this level can lift the price further up to 21,680.
But if there is a decline from the current level of 21,460, Nifty futures can find support between 21,350 and 21,300. Subsequent support is at 21,200.
Trading strategy
Stay on the fence for now. Initiate fresh longs when Nifty futures surpasses the resistance at 21,460. Keep the initial stop-loss at 21,380.
When the contract touches 21,575, modify the stop-loss to 21,500. Book profits at 21,650.
Supports: 21,350 and 21,300
Resistance: 21,460 and 21,575
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