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Taking cues from the bearish US markets, Asian stocks started the session on a negative note. The Nikkei 225 index tumbled 1.3 per cent, while Hang Seng Index slipped 0.3 per cent.
Both the Nifty and the Sensex started the session on a weak note. The Nifty futures contract opened at 9,977 levels. After marking an intra-day low of 9,950 levels, the contract turned volatile and recorded an intra-day high of 9,989.
The contract continues to trade in the negative territory with bearish bias. The market breadth of the Nifty is biased towards declines.
The near-term outlook is bearish for the contract. Traders with a near-term perspective can consider selling the contract in rallies while maintaining a fixed stop-loss at 9,990 levels.
Resumption of the down move can pull the contract down to 9,950 levels once again. Further decline below 9,950 can drag the contract down to 9,930 and 9,910 levels.
Significant resistance is in the band between 9,990 and 10,000. Strong rally beyond 10,000 is needed to bring back bullish momentum and take the contract higher to 10,030 and 10,050 levels.
Strategy: Consider initiating fresh short positions in rallies with a fixed stop-loss at 9,990 levels.
Supports: 9,950 and 9,930
Resistances : 9,990 and 10,030
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