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Nifty 50 January futures (10,845)
The Nifty 50 futures contract, which witnessed a sharp sell-off in late trade on Wednesday, continues to trade under pressure on Thursday. The resistance at 10,875 is holding well.
The index futures made a high of 10,873.9 and has come-off from there. A fall to 10,780 or 10,770 looks likely in the near term.
If the contract manages to bounce from this support, a relief rally to 10,840 and 10,860 is likely. But a strong break below 10,870 will increase the likelihood of the contract extending its downmove to 10,720 and 10,700, thereafter.
The bearish outlook will be negated only if the contract breaks above 10,885 decisively. Such a break can take the contract higher to 10,920 and 10,950.
Traders can make use of rallies to go short at 10,860. Stop-loss can be placed at 10,885 for the target of 10,810.
Strategy: Go short on rallies at 10,860 with a stop-loss at 10,885
Supports: 10,830, 10,770
Resistances: 10,875, 10,910
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