Comments
Nifty 50 January Futures (17,600)
Equity markets across Asia are down for the day as all the major indices are facing considerable selling pressure. On the back of this, the Indian benchmark indices i.e., the Nifty 50 and the Sensex have lost over 1 per cent each and are at 17,575 and 58,870 respectively. Among the Asian majors, ASX 200 and Nikkei 225 have lost 2.3 and 1.4 per cent respectively. Also, Hang Seng lost 0.8 per cent and KOSPI is down by 1.6 per cent.
The market breadth of the Nifty is showing a bearish bias as the advance-decline ratio is at 13-37. Like the benchmark indices, the Midcap 50 and the Smallcap 50 is down by 1.4 and 1.1 per cent, respectively. Barring the Nifty FMCG index (up by 0.5 per cent), all other indices are down for the day. The Nifty PSU bank index is the top loser, down by 2.5 per cent followed by the Nifty Consumer durables, down by 2.3 per cent.
Futures: The January futures of Nifty began the session with a considerable gap-down at 17,670 versus yesterday’s close of 17,804. The contract, after hitting an intraday high of 17,695, started to fall sharply. It is now trading around 17,600. The nearest support is at 17,500 – its 50-day moving average. A bounce off this level is likely. Support below this level can be seen at 17,400 and 17,275. On the other hand, the price area between 17,660 – 17,700 can be a resistance band. Subsequent barrier can be spotted at 17,760.
Although the market is facing significant selling pressure and the markets across Asia are in the red, the contract is likely to witness short-covering when it falls to 17,500. This corrective rally can extend to 17,700. So, traders can wait now and buy if it rebounds from the support at 17,500. Place stop-loss at 17,400. When the contract moves above 17,600, revise stop-loss to 17,500. Liquidate longs at 17,700.
Strategy: Buy the contract when it dips to 17,500 with stop-loss at 17,400. Shift it to 17,500 if price moves above 17,600. Liquidate the positions at 17,700
Supports: 17,500 and 17,400
Resistances: 17,660 and 17,700
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.