Nifty call: Go short on a downward reversal from 10,300

The Nifty 50 futures contract has failed to sustain momentum after opening with a wide 106-point gap-up.

The contract made a high of 10,351 immediately after the open and fell back sharply to make an intraday low of 10,247.70. The bounce-back move from the day's low lacks strength.

Resistance is at 10,300 which has to be broken for the contract to regain momentum. Such a break can take it higher to 10,350 levels again.

But inability to break above 10,300 and a downward reversal from there can take the index futures lower to 10,245 again. Further break below 10,245 can take the contract lower to 10,225 or even 10,200 thereafter.

Short-term traders can wait for rallies and go short on a downward reversal from 10,300. Stop-loss can be placed at 10,325 for the target of 10,250. Revise the stop-loss lower to 10,280 as soon as the contract moves down to 10,270

Strategy: Go short on a downward reversal from 10,300 with a stop-loss at 10,325

Supports: 10,245, 10,225

Resistances : 10,300, 10,350

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