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Nifty 50 October Futures (10,302)
The Nifty 50 futures contract is trading on a negative note. The contract opened with a wide 100-point gap-down at 10,337. Though the contract bounced back to make an intraday high of 10,388, it failed to sustain higher.
It has come-off sharply from the day’s high and is currently trading at 10,302. The sharp fall on Wednesday and the extended sell-off today indicates that the overall downtrend is intact. Resistance is at 10,380 and then in the 10,420-10,430 region. The outlook will turn positive only if the contract manages to breach 10,430 decisively. But such a strong move looks unlikely at the moment.
Support is at 10,290 which is holding as of now. If the contract manages to sustain above 10,290, a range bound move between 10,290 and 10,390 can be seen for some time. However, the market bias continues to remain bearish. A subsequent break below ₹10,290 will increase the likelihood of the contract falling to 10,200 or 10,170 in the coming sessions.
Traders with high risk appetite can wait for a bounce back and go short at 10,345 and 10,370. Stop-loss can be placed 10,405 for the target of 10,220. Revise the stop-loss lower to 10,320 as soon as the contract moves down to 10,305.
Strategy: Go short at 10,345 and 10,370 with a stop-loss at 10,405.
Supports: 10,290, 10,200
Resistances: 10,390, 10,430
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