Nifty December Futures (8,164)
The Nifty futures extended its short-term downtrend tracking its Asian peers. The Nikkei is down 2 per cent and the Hang Seng fell 1.3 per cent this morning, while the Shanghai index is up 1.4 per cent.
On Tuesday, Nifty futures opened with a gap down at 8,218. After recording an intra-day high at 8,227 levels, it plunged, breaking key support at 8,200 levels. After declining nearly 1.7 per cent to an intra-day low of 8,123, the contract bounced back, testing the next key support at 8,150. It is in recovery mode. Nevertheless, the contract needs to move above 8,200 before it can move above 8,227 or 8,250. Traders can consider initiating fresh long positions on a rally above 8,200 levels with a stop-loss at 8,185.
As long as the contract trades below 8,200, the near-term stance for the session will remain bearish. A fall below 8,130 can pull the contract down to 8,100.
Strategy: Go long above 8,200, with a stop-loss at 8,185
Supports: 8,130 and 8,100
Resistances: 8,200 and 8,227
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