Following the bearish cues from the US market, the Indian benchmarks are trading lower today. The Nifty spot and the Sensex spot indices are down by a little over 0.3 per cent for current session.

The January futures contract of the Nifty 50 index opened lower at 12,296 versus its previous close of 12,329. After registering an intraday high of 12,312, the contract has been trading with a negative bias and struggles to sustain above 12,300.

The market breadth of the Nifty 50 index is also hinting a bearish bias as the advance-decline ratio is at 20-30. The market is witnessing increased volatility as indicated by India VIX- the volatility index. It has shot up by nearly 5 per cent to 11.55 levels. Among the sectoral indices, the Nifty realty index is the top gainer, up by 0.5 per cent whereas the Nifty media index is the top loser, down by 0.7 per cent.

The major trend in daily chart is bullish; however, for the contract to resume the rally, it should decisively break out of the critical resistance at 12,350. Until then, fresh long positions are not recommended. But from the perspective of trading, the contract can be approached with bearish bias for intraday as it is trading below the important level of 12,300. Also, the market breadth indicate a bearish bias and so the contract could face further downward pressure in today session. Thus, traders are advised to sell the contract on rallies with stop loss at 12,350.

Strategy : Sell on rallies with stop loss at 12,350

Supports: 12,250 and 12,230

Resistances: 12,300 and 12,350

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