Nifty’s outlook for Dec 9, 2022: Go long on dips at 18,640 and 18,610
Nifty 50 December Futures (18,674)
Sensex and Nifty 50 have come down after opening with a gap-up. Both indices are trading in red now. Sensex is at 62,411 and is down 0.25 per cent. Nifty at 18,573 is down 0.19 per cent.
The price action since Tuesday indicates that Nifty is not getting a strong follow-through to sustain above 18,600. This leaves the chances high for it to fall towards 18,500 during the day.
The level of 18,500 is good support that can limit the downside. We expect the Nifty to sustain above 18,500 and move up next week.
All the Asian major indices are trading in the green today. Nikkei 225 (27,921) and Hang Seng (19,758) are up 1.3 and 1.6 per cent respectively. Shanghai Composite (3,199) is up marginally by 0.07 per cent and Kospi (2,382) is up 0.52 per cent.
In the US, the Dow Jones Industrial Average (33,781) has moved up 0.55 per cent. The index is holding well above 33,500. A strong break above 34,000 can boost the bullish momentum and take the Dow up to 35,000 in the coming days.
Nifty 50 Futures
The Nifty 50 December Futures (18,674) is down 0.24 per cent. There is room to test 18,650 and even 18,620-18,600. However, a further fall beyond 18,600 is unlikely.
We expect the Nifty 50 December Futures contract to reverse higher anywhere from the 18,650-18,600 region. Such a reversal can take it up to 18,700-18,750 again. The contract will come under more pressure only if it breaks below 18,600. In that, case an extended fall to 18,550 can be seen.
Traders can wait for dips. Go long at 18,640 and 18,610. Keep the stop-loss at 18,580. Trail the stop-loss up to 18,650 as soon as the contract moves up to 18,680. Move the stop-loss further up to 18,685 when the contract touches 18,705 on the upside. Book profits at 18,720.
Supports: 18,650, 18,600.
Resistances: 18,730, 18,780.