Nifty 50 August Futures (10,021) The Nifty and Sensex started Tuesday's session on a positive note. But the indices failed to sustain trading in positive territory and began to decline and fell sharply below the key level.
The benchmark indices continue to hover in negative territory. The Asian markets are showing mixed trends. The Nikkei 225 is down 0.3 per cent at 19,996 levels, while the Hang Seng index has advanced 0.4 per cent to 27,807 levels.
The Nifty futures contract opened in negative territory at 10,081 levels. After marking an intra-day high of 10,104.9, the contract resumed its down-move and fell below the key 10,000-mark, registering an intra-day low of 9,958.
With this sharp fall, the premium has narrowed slightly against the underlying index. The near-term outlook for the contract is bearish. The market breadth of the Nifty index is biased towards declines.
Traders with a short-term perspective can sell the contract on rallies, while maintaining a stop-loss at 10,050 levels. Resumption of the downtrend can pull the contract down to 10,000 once again. A further fall below this level can drag the contract down to 9,975 and 9,950 levels. Significant resistances above 10,050 are placed at 10,075 and 10,100.
Strategy: Make use of intra-day rallies to initiate short positions, with stop loss at 10,050
Supports: 10,000 and 9,975
Resistances: 10,050 and 10,075
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