Nifty call: Go short with stop-loss at 9,680 if contract declines below 9,670

Nifty 50 June Futures (9,673) Following a positive open at 9,684, the Nifty futures contract began to move sideways in the band between 9,670 and 9,688. Asian stocks are trading mixed; Nikkei 225 is up 0.8 per cent, while the Hang Seng index is down 0.2 per cent.

The S&P/ ASX 200 index has declined 0.8 per cent to 5,757, but the MSCI Asia Pacific index has advanced 0.6 per cent to 155.2 levels. The underlying Nifty 50 index is also moving sideways in a narrow range with negative bias.

The market breadth of the index is slightly biased towards declines. As long as the Nifty futures trades in the band between 9,670 and 9,690, avoid taking fresh positions.

A strong slip below 9,670 will be a cue for going short with a stop-loss at 9,680. In that case, the contract can witness a corrective decline to 9,650 and then to 9,630 or 9,625 levels. The next key support below 9,625 is at 9,600 levels. On the other hand, a decisive rally beyond 9,690 can push the contract higher to 9,705 and then to 9,720 levels.

Strategy: Short positions can be initiated with a fixed stop-loss at 9,680 if the contract declines below 9,670

Supports: 9,670 and 9,650

Resistances: 9,690 and 9,705

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