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Nifty 50 continues to make new highs, touching 20,958 before dipping a bit from there. It is currently trading at 20,904, up 0.23 per cent.
Outlook is bullish. Immediate support is at 20,800, below which 20,500 is a strong support. As long as the Nifty trades above 20,500, it has a high chance to rise to 21,500-21,800 in the coming days.
Global indices
In Asia, the Shanghai Composite index (2,968) is trading flat. Nikkei 225 (33,393), Kospi (2,502) and Hang Seng (16,447) are all up by 0.3-1.9 per cent.
The Dow Jones Industrial Average (36,124) has been struggling to get a strong follow-through rise since the beginning of this week. The price action in the coming days will need a close watch. A fall below 36,000 can trigger a corrective fall to 35,500 and lower.
Nifty 50 Futures
The Nifty 50 December Futures (21,030) is up 0.42 per cent. Intraday support is at 20,950, below which 20,800 is a support at a much lower level. As long as the contract trades above 20,950, there is a high chance for the Nifty 50 December Futures contract to rise to 20,130-20,150 in the coming sessions.
If the contract declines below 20,950 during the day, a corrective dip to 20,800 can be seen.
Trade strategy
Traders can go long on dips at 20,980 and 20,960. Keep the stop-loss at 20,930. Trail the stop-loss up to 20,990 as soon as the contract moves up to 21,020. Revise the stop-loss further up to 21,030 when the contract touches 21,055. Exit the long positions at 21,080.
Supports: 20,950, 20,800
Resistances: 21,150, 21,200
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