Wednesday, December 30, 2015

The Nifty call: Go long with a stop-loss at 7,895

Nifty 50 December Futures (7,923)

The Nifty futures contract is trading calm but with a positive note. The pull back move from the day’s high of 7,941 lacks strength and has found support at a low of 7,918. Key intraday support is in the 7,905-7,900 zone. There isn't any danger of a sharp fall as long as the contract trades above 7,900. Immediate resistance is at 7,940. A strong break above it can take the contract higher to 7,960 today.

Traders with a short-term perspective can go long. Stop-loss can be kept at 7,895 for the target of 7,960. Intraday dips to 7,910 can be used to accumulate long positions.

The contract will come under pressure only if it declines below 7,900. The next target will be 7,875. But an immediate break below 7,900 looks less probable.

Strategy: Go long with a stop-loss at 7,895

Supports: 7,900, 7,875

Resistances: 7,940, 7,960

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