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Nifty 50 September Futures (9,814)
Following a positive, gap-up open at 9,898 levels, the Nifty futures contract encountered a key resistance at 9,900. The contract subsequently reversed direction, experiencing selling pressure at higher levels.
It breached key supports at 9,850 as well as 9,800 and recorded an intra-day low of 9,791 levels. The contract can test the support in the band between 9,790 and 9,800 for a while and there could be a corrective move up. However, overall trend is down for the contract. The market breadth of the Nifty index is biased towards negative.
Asian markets are trading mixed; Nikkei 225 was down 0.3 per cent, while Hang Seng Index was up 0.34 per cent.
Traders with a short-term perspective can make use of the intra-day corrective rally to initiate fresh short positions with a fixed stop-loss at 9,840 levels. Immediate resistances are at 9,830 and 9,850 levels.
Resumption of the downtrend from the first resistance can pull the contract down to 9,800 and 9,790 once again. Strong fall below 9,790 can pull the contract down to 9,775 and 9,750 levels in the short term. Key resistance above 9,850 are at 9,870 and 9,900 levels.
Strategy: Sell the contract in rallies while maintaining a tight stop-loss at 9,840
Supports: 9,800 and 9,790
Resistances : 9,830 and 9,850
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