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Nifty 50 May Futures (10,746)
Following a positive start with a gap-up open, both the Nifty and the Sensex started to decline on the back of profit-taking and selling pressure.
The US indices, the Dow and S&P 500, rose 0.8 per cent and 1 per cent, respectively, influencing the market opening. The Nikkei 225 climbed 0.4 per cent to 22,497 and Hang Seng index rallied about 1 per cent to 30,821 in today's session.
The Nifty May futures started the session in the green, opening at 10,772. However, the contract began to experience selling pressure and declined after marking an intra-day high at 10,794 levels.
The contract breached its immediate support at 10,770 and recorded an intra-day low of 10,728. The contract tests next key support at 10,745. An emphatic downward break of this base can drag the contract down to 10,725 and 10,700 levels.
Further plunge below 10,700 will strengthen the bearish momentum and pull the contract down to 10,675 and 10,650 levels. The market breadth of the Nifty index is biased towards declines. Significant resistances are at 10,770 and 10,795 levels.
On the upside, the contract needs to emphatically break above the vital resistance level of 10,770 to reinforce the bullish momentum and take the contract higher to 10,795 levels. Next resistance is at 10,820 and 10,840 levels.
Traders with a near-term perspective can go short on a decisive fall below 10,745 levels with a stop-loss at 10,755 levels. Near-term targets are 10,725 and 10,700 levels.
Strategy: Can go short on a decisive fall below 10,745 levels with a stop-loss at 10,755 levels
Supports: 10,745 and 10,725
Resistances: 10,770 and 10,795
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