Nifty 50 October Futures (10,241)

The Nifty futures contract opened weak at 10,240 levels. After marking an intra-day low of 10,228, the contract began to trend higher, breaching its immediate resistance at 10,255 levels and recorded an intra-day high of 10,271.

However after witnessing profit-taking and selling pressure at higher levels, the contract started to decline. Although the global markets, including the US and the Asian markets, are providing positive cues, the domestic markets are experiencing selling pressure at higher levels following the recent sharp rally.

Advances/declines ratio of the Nifty is biased towards declines. The contract can remain choppy in today's session. Hence, traders with a short-term perspective should tread with caution.

Key supports to watch are at 10,225 and 10,200. Only a strong plunge below 10,200 will being in bearish momentum and pull the contract down to 10,175 and 10,150 levels. On the other hand, the contract can test immediate resistance at 10,255. A conclusive rally beyond this level can push the contract northwards to 10,270 and 10,290.

Strategy : The contract can remain choppy in a narrow range between 10,225 and 10,255, tread with caution.

Supports: 10,225 and 10,200

Resistances: 10,255 and 10,270

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