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Nifty 50 January Futures (8,420) The Nifty futures contract started the session on a negative note at 8,404. After marking an intra-day low at 8,385 levels, the contract recovered and recorded an intra-day high at 8,427 levels. However, experiencing selling pressure, the contract is back in the red.
The Nifty 50 index is also volatile on weak global cues and is wavering at around 8,400. The advances/ declines ratio is slightly biased towards advances. Traders with a short-term perspective should stay cautious as long as the contract trades in the range between 8,400 and 8,430. A strong slump below the immediate support level of 8,400 will reinforce the bearish momentum and pull the index down to 8,380 levels and then to the 8,360 level.
In that case, traders can consider going short with a fixed stop-loss. On the upside an emphatic move beyond 8,430 is required to strengthen the bullish momentum and take the contract higher to 8,450 and 8,470 levels in the near term.
Strategy: Go short on a fall below 8,400
Supports: 8,400 and 8,380
Resistances: 8,430 and 8,450
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