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Nifty 50 May futures (9,322)
Following a flat open at 9,337, the Nifty May futures contract moved higher to record an intra-day high of 9,372.
However, the contract failed to sustain its intra-day gains and started to decline thereafter. It breached the key support level of 9,300 and registered an intra-day low of 9,281.
With buying interest emerging at below this key support, the contract once again moved above 9,300 levels. It continues to trade volatile.
The underlying Nifty 50 index is also volatile and its market breadth is almost even. The MSCI AC Asia Pacific Index is also trading flat at around 149 levels.
Traders with a short-term perspective should desist from taking fresh positions as long as the contract moves in the band between 9,300 and 9,350 levels.
Strong decline below 9,300 once again will bring back selling pressure and pull the contract down to 9,280 and then to 9,260 levels.
In that case traders can initiate fresh short positions with a fixed stop-loss at 9,310 levels. Conversely, if the contract manages to rally above 9,350 levels, then it can test next resistance at 9,370 levels.
Strategy: Desist from taking fresh positions as long as the contract moves in the band between 9,300 and 9,350
Supports: 9,300 and 9,280
Resistances: 9,350 and 9,370
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