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Nifty 50 March futures (8,965) The Nifty futures contract started the session with a gap up, opening at 8,975 levels. Subsequently, the contract extended its rally and tested the key resistance level of 9,000. However, after witnessing selling pressure and profit-taking at this resistance level, the stock began to decline. It recorded an intra-day low at 8,945 and then began to recover.
The market breadth in the Nifty 50 index is slightly biased towards advances. For more than two weeks, the Nifty futures contract has been in a sideways movement in a narrow range between 8,900 and 9,000. A fall below the immediate support level of 8,950 can reinforce the selling pressure and pull the contract down to 8,923 and 8,900 levels.
An emphatic plunge below the significant support level of 8,900 will further strengthen the downtrend and drag the contract down to 8,880 and then to 8,850 levels. On the other hand, a strong rally beyond 9,000 is needed to take the contract higher to 9,018 and 9,040 levels in the near term. Immediate resistance is at 8,980.
Strategy: Traders with a near-term view can consider going short only if the contract declines below 8,950 with a stop-loss at 8,965.
Supports: 8,950 and 8,923
Resistances: 8,980 and 8,900
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