The Nifty call: Stay out of the market

Nifty 50 Oct Futures (10,236)

The Nifty 50 futures contract has opened the week on a volatile note. The contract opened with about a 30-point gap-up at 10,220 and surged to an intraday high of 10,260. However, it failed to sustain higher and fell-back sharply to make an intraday low of 10,197. The index futures has reversed higher again from the day's low. Immediate outlook is unclear and hence traders can stay out of the market at this juncture.

Resistance is in between 10,250 and 10,260 which is likely to be revisited. Inability to break above 10,260 can pull the contract lower to 10,200 again and the contract can remain range bound between 10,200 and 10,260 for some time. But a strong break above 10,260 can boost the momentum and take it to 10,300 or even higher.

On the other hand, the contract will come under pressure if it breaks below 10,200. Such a break can drag the index futures lower to 10,170 or 10,145.

Strategy: Stay out of the market

Supports: 10,200, 10,170

Resistances: 10,260, 10,300