Nifty Call: Go short on rallies at 10,300 and 10,315 with a stop-loss at 10,335

Nifty 50 Nov Futures (10,285)

The Nifty 50 futures contract is trading on a weak note. The contract opened with a wide 40-point gap-down. It is trading 0.8 per cent lower at 10,285 now.

Though the immediate support around 10,275 is holding well as of now, the broader outlook has turned bearish. Strong resistance is in the broad 10,300-10,325 region. Rallies to this resistance zone is likely to trigger fresh selling in the market.

An eventual break below 10,275 can drag the contract lower to 10,240 or 10,225.

Traders can go short on rallies at 10,300 and at 10,315. Stop-loss can be placed at 10,335 for the target of 10,250. Revise the stop-loss lower to 10,290 as soon as the contract moves down to 10,275.

The downside pressure will ease only if the index futures breaches 10,325 decisively. Such a break will pave way for the next target of 10,350 and 10,370. But such a strong rally looks unlikely at the moment.

Strategy: Go short on rallies at 10,300 and 10,315 with a stop-loss at 10,335

Supports: 10,275, 10,240

Resistances : 10,300, 10,325

COMMENT NOW