Nifty 50 December Futures (17,250)
The Sensex and the Nifty 50 have been stuck in a narrow range since Tuesday this week. Muted trading ahead of the year-end is keeping the market stable in line with our expectation. Both the indices are trading slightly higher today. The Sensex (57,988) is up 0.31 per cent and the Nifty (17,259) is up 0.27 per cent for the day. On the charts, Sensex has a room for a rise to 59,000 with support in the 57,500-57,000 region. Similarly. Nifty can rise to 17,400 on a break above 17,300. Support for the Nifty is in the 17,100-17,200 range.
On the global front, the Dow Jones Industrial Average (36,488.63) continues to move up and is keeping up the near-term bullish view intact. As we had mentioned earlier, the Dow can test 37,000 on the upside in the coming days and then come down again.
In Asia, major indices are trading mixed. Nikkei 225 (28,827) and Kospi (2,982) are down over 0.3 per cent each while the Shanghai Composite (3,626) and Hang Seng (23,134) are up 0.8 and 0.2 per cent respectively.
Futures
The Nifty 50 December (17,250) is up 0.2 per cent today. It has support at 17,150 and resistance at 17,300. A breakout on either side of this range will determine whether the contract can go up to 17,400-17,450 or fall to 17,000 and lower. The chances of the contract continuing to remain stuck in this range for some more time cannot be ruled out. As the market approaches the year-end, we continue to prefer staying out of the market. Our preference will be to see how the market behaves initially in the few days of the new year and then take trade positions accordingly.
Strategy
Market stuck in a narrow range. Stay out of the market.