Nifty 50 continues to move higher. The index touched a new high of 21,759 and has come down from there. It is currently trading at 21,720, up 0.3 per cent.

The price action today is going to be very important. The region between 21,700 and 21,750 is an important resistance zone. Nifty has to breach 21,750 decisively in order to move further higher. Only a sustained rise above 21,750 will pave the way for testing 22,000 on the upside. Else there are chances to get a corrective fall to 21,500 and even lower.

Global indices

In Asia, barring the Nikkei 225 (33,555, down 0.38 per cent), other major indices are in green. Hang Seng (16,876) and Shanghai Composite (2,947) are up over a per cent. Kospi (2,637) is up 0.9 per cent.

The Dow Jones Industrial Average (37,565) in the US continues to move up. The index was up 0.3 per cent on Wednesday. The outlook is bullish. The Dow Jones can now rise to 38,000 and higher in the coming days.

Nifty 50 Futures

The Nifty 50 December Futures (21,722) is up 0.2 per cent. The contract rose to a high of 21,774 and has come down from there.

Immediate support is at 21,680. If the contract manages to sustain above this support, a rise to 21,800-21,830 can be seen during the day. A break above 21,830 will then open the doors to test 21,900.

The intraday outlook will turn negative if the Nifty 50 December Futures declines below 21,680. Such a break can drag the contract down to 21,600 and even lower.

Trade Strategy

Traders can go long now. Accumulate on dips at 21,700. Keep the stop-loss at 21,670. Trail the stop-loss up to 21,745 as soon as the contract moves up to 21,770. Move the stop-loss further up to 21,780 when the contract touches 21,795. Exit the long positions at 21,820.

Supports: 21,680, 21,600

Resistance: 21,830, 21,900

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