Nifty 50 December Futures (10,456) After a big gap-down opening, both the Nifty as well as Sensex made a huge comeback following the Gujarat and Himachal Pradesh poll results showing a BJP victory. Gains in other Asian markets also boosted sentiment. The Nikkei 225 surged 1.5 per cent and the Hang Seng Index rose 1 per cent.
The Nifty December futures contract started the session with a huge gap-down, opening at 10,201, and plunged to an intra-day low of 10,060. However, the contract bounced back recovering its intra-day loss and entered positive territory, breaching a key resistance at 10,360 levels. The contract subsequently surpassed key resistance at 10,400 and recorded an intra-day high of 10,459.
The near-term outlook will remain bullish as long as the contract trades above 10,400 levels. Traders with a near-term view can buy the stock with a stop-loss at 10,390 levels. The contract can encounter resistances at 10,475 and 10,500 levels. A further rally beyond 10,500 can take the contract higher to 10,525 and 10,550 levels. Key supports below 10,400 are placed at 10,360 and 10,330 levels.
Strategy: Make use of dips to buy the contract with a fixed stop-loss at 10,390 levels.
Supports: 10,400 and 10,360
Resistances: 10,475 and 10,500
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.