Nifty January Futures (8,242)
The Nifty futures contract opened flat and spiked to a high of 8,319 today. However, it failed to sustain at that level and reversed sharply lower to record a low of 8,212.5.
The contract is stuck in a narrow range between 8,212 and 8,255 since then. The immediate outlook is not very clear. The contract might continue to be range-bound as the volumes are expected to be thin since the markets have entered into the year-end holiday season.
Traders can stay out of the market for the day and get some trading cues for next week from today's close.
However, the broader view is bearish as long as the contract trades below 8,300. A strong break below 8,200 can increase the downside pressure and drag the contract to 8,170 initially and then to 8,120 thereafter.
Strategy : No trades for the day
Supports : 8,210, 8,170
Resistances : 8,255, 8,300