Nifty October Futures (7,790)

The Nifty Futures contract started the session on a positive note at 7,804 levels, following a sharp sell-off on Thursday. However, the contract witnessed some selling pressure and marked an intra-day low of 7,752 and has been volatile.

From an intra-day high of 7,872, the contract gave up most of the gains, indicating continued selling pressure at higher levels. To reinforce bullish momentum, the contract needs to decisively rally above the key resistance zone between 7,890 and 7,900.

The short-term trend is down for the contract. It is hovering well below its 21- and 50-day moving averages. Therefore, traders with a short-term perspective can follow the trend by initiating short position on rallies with a stop-loss at 7850. A downward reversal can pull the contract down to 7,780 and then to 7,750. Next key supports are at 7,730 and 7,700 levels.

Strategy: Initiate short position in rallies with a stop-loss at 7850 levels.

Supports: 7,780 and 7,750

Resistances: 7,850 and 7,870

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