23 December 2016


The Indices on Friday ended on a positive note. Thanks to early rollovers to January series and bargain hunting at lower levels after market witnessed seven straight sessions of losses. The Nifty closed slightly up at 7,985, after briefly recapturing the 8,000 level. The Nifty opened at 7,973 hitting a high of 8,023 and low of 7,942.The  Sensex ended with a gain of 61 points at 26,041. The Sensex opened at 25,960 touched an intra-day high of 26,143 and low of 25,872.
However, as the day progressed, late out of buying in the capital goods, consumer durables, oil & gas, auto, finance. The equity benchmarks erased some gains in afternoon trade due to lack of domestic as well as global cues ahead of Christmas holiday.
                                          The Nifty continues to trade under pressure. The futures contract made a gap-down opening this morning and hit an intraday low of 7,953. However, though it has now bounced higher, the view remains bearish. Strong resistance is in the 8000-8,050 zone which is likely to cap the upside. A reversal from this resistance region may drag the contract lower to 7,950 once again. Further, a break below 7,950 may see the index futures falling to 7,930 and 7,900 thereafter. Traders with a short-term perspective can go short on a rise to 7,995. Stop-loss can be placed at 8,050 for the target of 7,955.The downside pressure will ease only if the contract breaks above 8,050 decisively. Such a break may pave way for a rise to 8,100 and 8,150.
Supports: 7,950, 7,930

Resistances: 8,000, 8,050

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