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Nifty 50 December Futures (10,733)
The Nifty 50 futures contract is continuing to trade under pressure. After tumbling 2 per cent on Friday, the index futures have extended its downmove today. The contract is down 34 points and is currently trading at 10,733. The outlook remains negative.
Strong resistance is in the 10,785-10,800 region. The downside pressure will ease only if the contract breaks above 10,800 decisively. But such a strong upmove looks less probable at the moment.
A dip to test 10,700 is likely in the near term. If the Nifty 50 futures contract manages to bounce from 10,700, an upmove to 10,750 and 10,800 is possible. In such a scenario, a range bound move between 10,700 and 10,800 can be seen for some time. An eventual break below 10,700 will drag the index futures lower to 10,650 and 10,600 thereafter. Traders can go short on rallies at 10,755 and 10,775. Stop-loss can be placed at 10,795 for the target of 10,660. Revise the stop-loss lower to 10,740 as soon as the contract moves down to 10,725.
Strategy: Go short on rallies at 10,755 and 10,775 with a stop-loss at 10,795
Supports: 10,700, 10,650
Resistances: 10,785, 10,800
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