Nifty 50 December Futures (18,394)
Sensex and Nifty 50 have been oscillating up and down since the beginning of this week. Nifty has been range-bound between 18,200 and 18,500. Sensex on the other hand is stuck between 61,000 and 62,000. Within their range, the indices are coming down today.
Nifty has strong resistance in the 18,500-18,600 region. It has to break above 18,600 decisively to strengthen the bullish case. Else, it can either remain stuck the current range or fall to 18,100-18,000 and then possibly reverse higher again. We will have to wait and watch.
Global cues
Asian indices are trading mixed. Hang Seng (19,151.7) is up 0.3 per cent while Shanghai Composite (3,073) is flat. Nikkei 225 (26,360) and Kospi (2,329) are don 0.78 and 0.18 per cent, respectively.
In the US, the Dow Jones Industrial Average (32,849) had risen 0.28 per cent yesterday. The index is managing to hold above 32,500. It is now important to see if it is gaining momentum and rising past 33,000 from here. Inability to break above 33,000 can keep it under pressure to test 32,000 on the downside.
Nifty 50 Futures
The Nifty 50 December Futures (18,394) is down by 0.16 per cent. The price action indicates that the contract is struggling to get a strong follow-through rise above 18,500. The chances are looking high to see an intraday fall to 18,300 if it fails to bounce back above 18,400 immediately.
Broadly, the Nifty 50 December Futures will have to rise past 18,520 decisively to gain bullish momentum and rise to 18,600-18,650. Else it can oscillate between 18,300-18,500 or 18,200-18,500.
Trading strategy
Though the chances of a fall from here is high, considering the risk-reward ratio, we suggest traders to stay out of the market.
Supports: 18,300, 18,200
Resistances: 18,520, 18,650