Comments
Nifty 50 has opened with a wide gap-up today and is trading strong. The index has risen well above the 21,000 mark after struggling to breach this level over the past few days. The rise in the Nifty has come on the back of the US Federal Reserve meeting outcome on Wednesday night.
The Fed left the rates unchanged at 5.25-5.5 per cent as widely expected by the market. The central bank had indicated a 75 basis points rate cut next year. This has triggered a sharp rise in the risky asset classes such as the equities.
Nifty is currently trading at 21,132, up 0.98 per cent. Supports are at 21,120 and 21,080. Outlook is bullish. Nifty will now have the potential to target 21,400 in the coming days.
Global indices
In Asia, barring the Nikkei 225 (32,573, down 1.1 per cent), other major indices are in green. Kospi (2,537) and Hang Seng (16,408) are up over a per cent each. Shanghai Composite (2,977.56) is up 0.3 per cent.
The Dow Jones Industrial Average (37,090) surged 1.4 per cent to close at a new high on Wednesday. The outlook is bullish. Strong support will now be around 36,000. The Dow Jones can now target 38,000 and even higher levels in the coming weeks.
Nifty 50 futures
The Nifty 50 December futures (21,260) is up over a per cent now. The contract has risen well above a key resistance level of 21,180 which will now act as good support. Outlook is bullish. The Nifty 50 December futures contract can rise to 21,500 and even higher in the coming days.
The outlook will turn negative only if the contract declines below 21,180. In that case a fall to 21,000 and lower is possible. But such a fall looks unlikely.
Trade strategy
Positional trades can be considered at the moment which the traders can carry over at least till tomorrow (Friday). Go long now. Accumulate on dips at 21,220. Keep a stop-loss at 21,060. Trail the stop-loss up to 21,290 when the contract touches 21,320. Move the stop-loss further up to 21,340 when the contract touches 21,370. Exit the long positions at 21,400.
Supports: 21,180, 21,000
Resistances: 21,400, 21,600
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.