Nifty 50 December futures (21,095)

Nifty 50 has risen above the psychological 21,000 mark. The index has been struggling to get a sustained rise above 21,000 over the last two trading days. It is important to see if the rise above 21,000 seen today is sustaining or not. Nifty is now trading at 21,029, up 0.15 per cent.

The outlook is bullish. However, intraday resistance is at 21,060. A strong break above it can take the Nifty up to 21,200 and higher in the coming days. Intraday supports are at 21,000, 21,950 and 21,900.

 From a big picture, Nifty can target 21,500-21,700 in the coming days as long as it stays above 20,850.

Global indices

All Asian major indices are in green. Nikkei 225 (32,852), Kospi (2,532) and Hang Seng (16,338) are all up in the range of 0.2-0.85 per cent. Shanghai Composite (2,993) is flat.

The Dow Jones Industrial Average (36,404) has risen well breaking above the key resistance level of 36,300. A further rise from here can take it up to 36,500-36,700 in the coming days.

Nifty 50 futures

The Nifty 50 December futures (21,095) is trading flat. Resistance is at 21,150. Support is at 21,000. The contract can oscillate up and down between 21,000 and 21,150 for some time now. The bias is bullish. So, we can expect the Nifty 50 December Futures contract to break above 21,150 if not immediately but eventually. Such a break can take the contract up to 21,300 and higher in the coming days.

The contract will come under pressure if it breaks below 21,000. Such a break can take it down to 20,950 and lower.

Trade strategy

Traders have to wait for dips. Go long at 21,040 and 21,010. Keep the stop-loss at 20,970. Trail the stop-loss up to 21,060 when the contract moves up to 21,090. Move the stop-loss further up to 21,110 when the contract touches 21,130. Exit the long positions at 21,150.

Supports: 21,000, 20,950

Resistances: 21,150, 21,200

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