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Nifty 50 June futures (9,533)
The Nifty 50 futures contract has tumbled about a per cent after opening with a gap-up at 9,615.
The contract made an intraday high of 9,616.9 and reversed sharply lower from there to make a low of 9,522.5. The fall has dragged the contract below a key support level of 9,580 which was holding well over the last four weeks.
The outlook is bearish. Resistances are at 9,550 and 9,580. A fall to 9,500 looks likely now. Inability to reverse higher from 9,500 can drag the index futures lower to 9,470.
Short-term traders can make use of bounces to go short at 9,545. Stop-loss can be placed at 9,565 for the target of 9,510. Revise the stop-loss lower to 9,540 as soon as the contract moves down to 9,525.
The downside pressure will ease only if the index futures manages to rise past 9,580 decisively. But such a strong bounce looks less probable at the moment.
Strategy : Go short on rallies at 9,545 with a stop-loss at 9,565
Supports: 9,500, 9,470
Resistances: 9,550, 9,580
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