Nifty 50 opened the final session of the week higher at 20,934.10 versus yesterday’s close of 20,901.15. The index is now at 20,960, up 0.3 per cent.

Equity markets across Asia are sending positive cues. Major indices such as ASX 200 (7,190), Hang Seng (16,400) and KOSPI (2,510) have scaled higher between 0.2 and 0.8 per cent. Notably though, the Nikkei 225 (32,320) has lost 1.6 per cent.

Yet, the broader bullish sentiment has kept the domestic market on the positive side. Supporting this, the advances/ declines ratio of the Nifty 50 stands at 34/16. Moreover, all the mid- and small-cap indices are up.

All the sectors, barring Nifty Auto and Nifty Pharma which are flat so far, are in the green. Nifty Media and Nifty Metal, up 1.5 per cent each, are the top gainers.

The Nifty 50 and Nifty futures chart remains bullish and exhibits the potential to appreciate further, especially intraday.

Nifty 50 futures

The December futures contract of the Nifty 50 opened today’s session at 21,085, as against Thursday’s close of 21,030.80. It is currently trading at 21,075.

The contract has now moved above a barrier at 21,050 and has broken out of the range of 20,950-21,050. This has increased the chances of a rally from here.

We expect the contract to touch 21,200 intraday. A breach of this will open the doors for the upswing to extend to 21,500 in the coming sessions.

But if the Nifty futures falls back below 21,050, the downswing might extend to 21,000, but not beyond it. Support below this level is at 20,950. 

Trading strategy

Buy Nifty futures now at 21,075 and add longs if the contract dips to 21,000. Place stop-loss at 20,940. When the contract rises to 21,150, alter the stop-loss to 20,090. Exit at 21,200.

Supports: 21,050 and 21,000

Resistance: 21,200 and 21,500

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