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Nifty 50 October Futures (8,637)
The Nifty futures contract started the session on a negative note with a gap-down, opening at 8,662 on weak global cues due to plunging oil prices. The selling pressure continued and the contract recorded an intra-day high at 8,669 and resumed its decline. It fell below the key support level of 8,600 and marked an intra-day low at 8,585 before witnessing a recovery.
The market breadth advance/decline ratio is biased towards declines. The near-term stance is bearish. Traders with a short-term perspective can make use of intra-day rallies to initiate fresh short positions, while maintaining stop-loss at 8,660 levels. On continuation of the downtrend, the contract can test support at 8,620 and then 8,600. A decisive tumble below the key support level of 8,600 will further strengthen the downtrend and pull the contract down to 8,580 and 8,550 levels. On the other hand, the contract has significant resistances at 8,675 and 8,700 levels. A strong rally beyond 8,700 is needed to alter the bearish outlook and take the contract higher to 8,730 and 8,750 levels.
Strategy: Go short on rallies with a stop-loss at 8,660
Supports: 8,620 and 8,600
Resistances: 8,675 and 8,700
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