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The Nifty 50 futures contract has been range bound between 9,400 and 9,500 since Thursday. The contract tested the upper end of the range earlier during the day and has come-off from the high of 9,492. However, the index futures is finding support near 9,450 and is trying to bounce back again. As long as it trades above 9,450 a rise to test 9,500 is likely during the day.
Inability to break above 9,500 can pull the contract back to 9,450 or even 9,400 in the coming sessions. But a strong break above 9,500 may boost the bullish sentiment and can take the contract higher to 9,525 and 9,550.
On the other hand, if the index futures falls below 9,450 during the day, it can move down to test 9,400 - the lower end of the range. The outlook will turn bearish only if the contract declines below 9,400. Such a break will increase the likelihood of the contract declining to 9,370 and 9,350 thereafter.
Traders can stay out of the market and wait for a breakout on either side of 9,400 or 9,500 to get a clear trading cue.
Strategy: Stay out of the market
Supports: 9,450, 9,400
Resistances: 9,500, 9,525
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