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Nifty 50 January Futures (10,697)
Taking cues from the negative Asian markets, the Sensex and the Nifty started the session on a flat note. But, subsequently the key benchmark indices began to witness selling pressure and continued to decline.
The Nikkei 255 has declined 0.6 per cent to 20,649 and Hang Seng index has entered the negative territory, trading at 27,565. The market breadth of the Nifty index is biased towards declines. The Nifty mid and small-cap indices have slumped more than 1.4 per cent.
The Nifty January futures started the session on a flat note at 10,784. After recording an intra-day high at 10,821 the contract began to decline due to selling pressure and profit taking. The contract breached key supports at 10,800 and 10,750 levels. But, marking an intra-day low at 10,680 the contract started to recover.
Overall, the short-term outlook is bearish for the contract.
Traders can make use of intra-day rallies to sell the contract while maintaining a fixed stop-loss at 10,760 levels.
A decisive fall below the next key support level of 10,700 can strengthen the down-move and drag the contract down to 10,675 and 10,650 levels. Key resistances above 10,750 are at 10,780 and 10,800.
Strategy: Sell in rallies with a fixed stop-loss at 10,760 levels.
Supports: 10,700 and 10,675
Resistances: 10,750 and 10,780
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