Nifty 50 January futures (8,438)
The Nifty 50 futures contract opened with a gap-up at 8,421 and rose to an intraday high of 8,450. However, it is currently coming-off from the day’s high. Immediate support is at 8,422 which can be tested, but a break below it looks less probable. The next supports are at 8,405 and 8,305. A subsequent reversal from 8,422 can take the contract higher to 8,450 once again. A strong break above 8,450 can take it further higher to 8,470 or even 8,500.
Short-term traders can go long on dips at 8,425. Stop-loss can be placed at 8,410 for the target of 8,465.
The outlook for the contract will turn negative only if it declines below 8,395 decisively. But such a strong break looks unlikely in the near-term.
Strategy : Go long on dips at 8,425 with a stop-loss at 8,410
Supports : 8,422, 8,405
Resistances : 8,450, 8,470