Nifty 50 December Futures (7,906)
The Nifty futures contract started the session on a positive note, opening at 7,922 levels. But the contract met with immediate resistance at 7,930 and began to decline. The contract has lost its initial gains and it has entered negative territory, below the previous close of 7,908. However, the contract has key support at 7,900. As long as the contract trades above this level, there is a possibility of a bounce back.
Traders should tread with caution at this junction. Initiate fresh longs only on a rally above 7,915 levels with a stop-loss at 7,900 levels. The initial target is 7,930 and the next one at 7,950, which is the next key resistance level. But, a strong fall below the important base level of 7,900 will create selling pressure and drag the contract down to 7,870 and then to 7,850 levels.
Strategy: Initiate fresh longs on a rally above 7,915 with a stop-loss at 7,900
Supports: 7,900 and 7,870
Resistances: 7,930 and 7,950