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Nifty 50 June Futures (9,602)
The Nifty 50 futures contract is trading on a mixed note and is hovering around the psychological 9,600 level since the opening today.
Price action suggests that the contract is not gaining strength to sustain above 9,600. The index futures made an intraday high of 9,627 and has come-off from there. Support is at 9,580 which is likely to be tested during the day.
A break below 9,580 can drag the contract lower to 9,550 and 9,530. The level of 9,530 is a key trendline support which is likely to halt the current fall. A subsequent reversal from 9,530 may take the contract higher to 9,600 levels once again.
Short-term traders with high risk appetite can go short on a break below 9,580. Stop-loss can be placed at 9,595 for the target of 9,550. Revise the stop-loss lower to 9,575 as soon as the contract moves down to 9,565.
On the other hand, if the Nifty 50 futures contract manages to sustain above 9,580, it can remain range-bound between 9,580 and 9,625 for some time. A breakout on either side of this range will then decide the next trend.
Strategy : Go short on a break below 9,580 with a stop-loss at 9,595
Supports: 9,580, 9,550
Resistances: 9,625, 9,640
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