Nifty 50 December Futures (13,418) The Sensex and Nifty 50 started the session on a positive note and continued to trend upwards despite weak Asian markets. The Nikkei 225 has slipped 0.3 per cent to 26,467 and Hang Seng index has fallen 0.7 per cent to 26,312 levels in today's session. The domestic benchmark indices began to witness selling interest at higher levels, after an initial rally. Both the Sensex and the Nifty 50 have re-entered the positive territory following a minor dip into the negative region. However, the market breadth of the Nifty 50 is biased towards declines. On the other hand, the India VIX has gained 2.5 per cent to 18.5 levels indicating increase in volatility. The Nifty mid- and small-cap indices are down by 0.3 per cent and 0.1 per cent respectively. Sectoral indices look mixed; the top gainers are the Nifty PSU and realty index that have gained 3.5 per cent and 0.9 per cent correspondingly. The selling interest is seen in the Nifty metal and pharma index which have slumped 1.4 per cent and 0.9 per cent respectively.
The Nifty 50 December month contract started the session with a gap-up open at 13,401. It recorded an intraday high at 13,464 and began to decline. But a key support at 13,350 had cushioned the contract and it is now moving sideways. The contract faces considerable resistance at 13,440. A decisive rally above this rally can take it higher to 13,460 and then to 13,480. But a conclusive fall below the immediate support level of 13,390 can pull the contract down to 13,350. Supports below 13,350 are at 13,330 and 13,300 levels.
Strategy: Go long on a strong rally above 13,440 with a fixed stop-loss
Supports: 13,390 and 13,350
Resistances: 13,440 and 13,460