Nifty 50 September futures (11,027)
The Nifty 50 futures contract continues to trade under pressure. Though the contract opened with a slight gap-up, it failed to sustain higher. The contract has reversed sharply lower after making an intraday high of 11,185. The contract is hovering around the day's low of 11,010.
If the contract manages to sustain above the psychological support level of 11,000, a corrective bounce to 11,050 or 11,075 cannot be ruled out. However, the broader bearish outlook will remain intact and fresh selling interest is likely to emerge at higher levels.
An eventual break below 11,000 will drag the index futures lower to 10,950 or even lower. Traders can wait for a bounce and go short at 11,045 and 11,060. Stop-loss can be placed at 11,080 for the target of 10,970. Revise the stop-loss lower to 11,030 as soon as the contract moves down to 11,010.
Strategy: Go short on a bounce at 11,045 and 11,060, with stop-loss at 11,080
Su pports: 11,000, 10,950
Resistances: 11,050, 11,075
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