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Nifty 50 September Futures (11,405)
Nifty 50 futures contract began the week on a negative note. The contract opened with a wide 62-point gap-down at 11,485 and tumbled to a low of 11,400. The contract is hovering around the day’s low of 11,405 and is down 1.2 per cent for the day.
The sharp downward reversal indicates that the upmove witnessed towards the end of last week was just a corrective bounce. This leaves the overall downtrend that has been in place over the last couple of weeks intact.
Key intraday resistances are at 11,440 and 11,470 which are likely to cap the upside. A break below 11,400 can take the index futures lower to 11,370 initially. Further break below 11,370 will then increase the likelihood of the contract tumbling to 11,320 and 11,300 levels thereafter.
Traders can wait for a bounce and go short at 11,425 and 11,440. Stop-loss can be placed at 11,455 for the target of 11,375. Revise the stop-loss lower to 11,415 as soon as the contract moves down to 11,405.
Strategy: Wait for a bounce and go short at 11,425 and 11,440 with a stop-loss at 11,455.
Su pports: 11,440, 11,470
Resistances: 11,370, 11,320
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