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Nifty 50 June Futures (10,702)
Domestic benchmark indices, the Nifty and Sensex, started the session in the negative territory, taking bearish cues from global markets.
The US markets had ended on a mixed note last session. The Nikkei 225 fell 0.56 per cent to 22,694 and Hang Seng index tumbled 1.6 per cent to 31,013 in today's session.
Both the Nifty and Sensex continued to trade in the red on the back of profit-taking. The June month Nifty futures contract began the session with a gap-down open at 10,724.
After an initial rally to an intra-day high of 10,744, the contract resumed its down move, witnessing selling pressure at higher levels. The contract has marked an intra-day low at 10,696 and tested support at 10,700.
A strong fall below this level can pull the contract down to 10,680 and 10,650 levels. Next key supports are at 10,625 and 10,600 levels.
On the other hand, a strong rally beyond 10,740 is needed to bring back bullish momentum and take the stock higher to 10,765-10,775 range in the near term.
Traders should tread with caution as long as the contract trades above 10,700. Consider initiating fresh short positions with a fixed stop-loss on a decline below 10,700 with a stop-loss at 10,715 levels.
Strategy: Fresh short positions can be initiated on a fall below 10,700 with a stop-loss at 10,715.
Supports: 10,700 and 10,680
Resistances : 10,725 and 10,740
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