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Nifty 50 February futures (11,030)
The Nifty 50 made a a gap-down opening today and is trading under pressure, following an overnight sell-off in global markets. The contract fell to a low of 11,009.85 and has bounced up from there. The psychological support level of 11,000 is holding well as of now.
As long as the contract sustains above 11,000, a bounce to test the 11,060-11,080 resistance region cannot be ruled out. A strong break above 11,080 would ease the downside pressure. Such a break would increase the likelihood of the contract revisiting 11,140-11,150 levels.
The inability to breach the 11,060-11,080 resistance zone could make the contract vulnerable to a break below 11,000. The ensuing targets on a break below 11,000 are 10,970 and 10,930.
The bias is negative, and the 11,060-11,080 region is likely to cap the upside. As such, high-risk appetite traders can wait for a bounce up and go short at 11,045 and 11,060. Stop-loss can be placed at 11,090, for the target of 10,980. Revise the stop-loss lower to 11,035 as soon as the contract moves down to 11,020.
Strategy: Wait for a bounce up and go short at 11,045 and 11,060, with stop-loss at 11,090
Supports: 11,000, 10,970
Resistances: 11,060, 11,080
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