Nifty 50 December Futures (10,487)
After a positive start, the Nifty and Sensex slipped into the red during initial hours of trading. Due to buying interest, the benchmark indices bounced back subsequently into the positive territory.
Global markets showed mixed cues. The Nikkei 225 index was marginally up by 23 points to 22,891, while the Hang Seng index was marginally down by 42 points at 29,211.
The Nifty December futures contract opened at 10,472 and slipped into the negative territory. However, recording an intra-day low of 10,447, the contract reversed higher and re-entered the positive territory. It has marked an intra-day high of 10,495.
Market breadth of the Nifty index is biased towards advances. The near-term outlook remains bullish as long as the contract trades above the key support level of 10,470 level.
Traders with a near-term view can buy the contract in dips with a stop-loss at 10,465 level. The contract can test resistance at 10,500. An emphatic breakthrough of this resistance can take the contract higher to 10,525 and 10,550 in the short term. Key supports below 10,470 are placed at 10,450, 10,430 and 10,400 levels,
Strategy : Make use of dips to buy the contract with a stop-loss at 10,465 level
Supports: 10,470 and 10,450
Resistances : 10,500 and 10,525