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Nifty 50 February Futures (10,905)
The Nifty 50 futures contract is trading under pressure. The contract opened with a gap-down and fell to a low of 10,870. Though it has reversed from the day's low, the bounce-back move seems to lack strength. The resistance in the 10,920-10,930 region is likely to cap the upside during the day.
Next significant resistance is in the 10,950-10,960 region. The contract may test the 10,920-10,930 resistance zone. But a break above it looks less probable.
As such, a downward reversal from this resistance region will see the index futures tumbling towards 10,840 and 10,800 in the coming sessions on the back of fresh selling.
Traders can go short at current levels and also at 10,925. Stop-loss can be placed at 10,940 for the target of 10,850. Revise the stop-loss lower to 10,985 as soon as the contract moves down to 10,970. The outlook will turn positive only if the index futures breaks above 10,960 decisively.
The next targets are 11,000 and 11,045. But such a strong upmove breaking above 10,960 looks less probable at the moment.
Strategy: Go short at current levels and at 10,925
Supports: 10,870, 10,840
Resistances: 10,930, 10,960
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