Wednesday, December 23, 2015

The Nifty Call: Go long with a stop-loss at 7,835

Nifty 50 December Futures (7,860)

The Nifty 50 futures contract is trading on a positive note. The contract opened with a huge gap up and surged to record a high of 7,874.65.

It is currently hovering around the day’s high in a narrow range. Immediate supports are at 7,855 and 7,840. There is no danger of a sharp fall as long as the contract trades above these levels.

Immediate resistance is at 7,875. A strong break above this hurdle can take the contract higher to 7,900.

Short-term traders can go long. Stop-loss can be kept at 7,835 for the target of 7,900. Intraday dips to 7,945 can be used to accumulate long positions.

The outlook will turn negative only on a strong fall below 7,840. Next target will be 7,805.

Strategy: Go long with a stop-loss at 7,835

Supports: 7,840, 7,805

Resistances: 7,875, 7,900

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