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Nifty 50 September futures (11,016)
The Nifty 50 futures contract is showing signs of relief after having fallen continuously over the past one week. Though the contract extended its fall in opening trade, it has managed to recoup from the day's low. The contract made a low of 10,909 and reversed higher, recovering all the loss and is currently trading at 11,012.
On the intraday chart, an inverted head and shoulder pattern is getting formed. The neckline resistance of this pattern is at 11,062. A strong break above this hurdle will trigger a corrective rally to 11,135 or even 11,200 in the coming sessions.
Traders with a high-risk appetite can go long at current levels. The stop-loss can be placed at 10,985 for the target of 11,085. Revise the stop-loss higher to 11,030 as soon as the contract moves up to 11,045.
The contract will come under selling pressure again only if it declines below 11,000. Such a break can take the contract lower to 10,970 initially. A further break below 10,970 will then increase the likelihood of the contract extending its fall to 10,900.
Strategy: Go long at current levels with stop-loss at 10,985
Supports: 11,000, 10,970
Resistances: 11,062, 11,135
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