Nifty call: Go short on a decisive fall below 10,500 with a fixed stop-loss at 10,510 levels

Nifty 50 April Futures (10,513)

The Nifty and Sensex began the session on a positive note but after a minor rally, the benchmark indices have entered into the negative territory.

Global cues were mixed. The US indices rose about 0.8 per cent last session. However, the Asian indices were hovering almost flat. The Hang Seng index was down 0.3 per cent at 30,233 and Nikkei 225 was up just 12 points at 21,847.

Domestic indices lack strength. The market breadth of the Nifty index is biased towards declines. Nifty IT, media and pharma are major draggers.

The Nifty futures contract started the session on a positive note at 10,563. But, after recording an intra-day high at 10,564.9, the index futures began to decline and has marked an intra-day low at 10,506.

The contract has a near-term support at 10,500. An emphatic breach of this base level can drag the contract down to 10,475 and 10,450 levels. Next key supports are placed at 10,430 and 10,410 levels.

On the other hand, a strong rally above 10,530 is needed to bring back the bullish momentum and take the contract northwards to 10,554. Subsequent resistances are at 10,565 and 10,580 levels.  

Strategy : Go short on a decisive fall below 10,500 with a fixed stop-loss at 10,510 levels.

Supports : 10,500 and 10,475

Resistances: 10,530 and 10,550

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