Nifty 50 January Futures (8,161)
The Nifty January futures contract started the session on a positive note at 8,215 with a gap-up at the open. However, the contract started to decline, experiencing selling pressure. Asian markets are trading on a mixed note. The Nikkei 225 is down 30 points at 19,114 and the Hang Seng index is up 209 points at 22,000 levels.
The contract breached its immediate support at 8,200. But it took support at around 8,150 and is on a corrective upmove, which finds difficulty in surpassing the immediate resistance at 8,175 levels.
The Nifty 50 advances/declines ratio is biased towards advances. Traders with a short-term perspective should desist from trading as long as the contract trades in the band between 8,150 and 8,200. A strong break through 8,200 is required to bring back bullish momentum. In that case, traders can initiate fresh long positions with a fixed stop-loss.
The next key resistances are at 8,225 and 8,240 levels. On the other hand, a decisive slump below 8,150 will strengthen the selling pressure and drag the contract down to 8,130 and then to 8,100 levels.
Strategy: Desist from trading in the contract as long as it trades in the band between 8,150 and 8,200.
Supports: 8,150 and 8,130
Resistances: 8,175 and 8,200