Nifty 50 February Futures (10,855) The impact of the Interim Budget seems to have been short-lived. The Nifty 50 futures began the week on a negative note, after having coming off sharply from Friday's high of 11,023.
On the charts, the 10,500-11,000 sideways range, within which the contract has been broadly trading since November 2018, remains intact. Within this range, the outlook is now negative. There is a strong likelihood of the contract falling towards 10,800 and 10,770 in the near term.
Immediate resistance is at 10,870 and the next key hurdle is in the 10,890-10,900 region. An intermediate bounce to these resistances is likely to find fresh sellers entering the market.
Traders can go short at current levels. Stop-loss can be placed at 10,885 for the target of 10,790. Revise the stop-loss lower to 10,845 as soon as the contract moves down to 10,830.
The downside pressure will ease only if the index futures breaks above 10,900 decisively. But such a strong move looks less probable at the moment.
Strategy: Go short at current levels with a stop-loss at 10,885
Supports: 10,800, 10,770
Resistances: 10,870, 10,900
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.