Taking cues from the bearish global markets, the Nifty and the Sensex began the session on a negative note. Following an initial rally to the intra-day high the benchmark indices slipped deep into negative territory and continue to trade here. The Dow Jones tumbled 2 per cent and S&P 500 index slumped 1.6 per cent in last session sending negative cues to the global markets. The Nikkei 225 has slipped over 1 per cent to 20,166 in today trading session and Hang Seng index has recovered from its intra-day low and is trading marginally in positive territory, adding 0.25 per cent to 25,687 levels.
The Nifty December futures contract began the session with a gap-down open at 10,960. After recording an intra-day high at 10,981, the contract resumed its down-move, breaching a key support at 10,900. Extending the decline, the contract recorded an intra-day low at 10,820. As long as the contract trades below 10,900, the near-term view is bearish for the contract. Traders can make use of intra-day rallies to sell the contract while maintaining a fixed stop-loss at 10,910 levels. The contract can test supports at 10,825 and 10,800. On the upside, a decisive break above 10,900 can bring a corrective up-move to 10,930 and 10,950 levels. Next key resistance is placed at 10,978 and 111,000.
Resistances: 11,000 and 11,030