Nifty 50 June Futures (9,585)

The Nifty started the session on a positive note at 9,639 and marked an intra-day high of 9,640 levels. But the contract failed to sustain the momentum and fell sharply breaching the key immediate support level of 9,625 and then 9,600 levels. The US and Asian markets show mixed trends. The Nikkei 225 is up marginally while Hang Seng is slightly down.

The underlying Nifty 50 index is also experiencing selling pressure and is down 0.6 per cent. The market breadth of the index is biased towards declines. As the index breached a key support at 9,600 the selling pressure has increased. Traders with a short-term perspective can make use of intra-day rallies to initiate fresh short positions in the contract with a stop-loss at 9,610 levels.

The contract can continue its decline and test supports at 9,560 and then at 9,540 levels. Next key supports are at 9,520 and 9,500 levels. On the other hand, the contract has significant resistances at 9,600 and 9,625 levels which can limit the intra-day upside. Strong rally beyond 9,625 is required to bring back buying interest and take the contract higher to 9,650 levels. Subsequent resistance is at 9,675.

Strategy : The contract witnesses selling pressure at higher levels. Sell in rallies with a stop-loss at 9,610

Supports : 9,575 and 9,560

Resistances : 9,600 and 9,625

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