Nifty call: Go short with stop-loss at 11,375
Nifty 50 September futures (11,343)
The Nifty 50 futures contract remains in a downtrend. Though the contract managed to reverse higher from the day's low of 11,300, the bounce-back move lacks strength. The contract has reversed lower again, after hitting a high of 11,365. The outlook remains bearish.
Support is in the 11,300-11,290 region and the contract is likely to break below this level. Such a break will increase the selling pressure and drag the contract lower to 11,260 or even 11,230 thereafter.
Traders can go short at current levels. Stop-loss can be placed at 11,375 for the target of 11,270. Revise the stop-loss lower to 11,325 as soon as the contract moves down to 11,310.
Strategy: Go short with stop-loss at 11,375
Supports: 11,360, 11,400
Resistances: 11,290, 11,260