Nifty 50 January Futures (10,543)

Following a positive open, both the Nifty and Sensex turned volatile and started to move sideways. Witnessing selling pressure at higher levels, the key benchmark indices slipped into the red and are currently hovering in this territory.

The Nifty January contract began the session in the negative territory, at 10,540. After marking an intra-day high at 10,556, the contract resumed its down move and recorded an intra-day low at 10,533. The market breadth of the Nifty index is biased towards declines.

The intra-day rallies can witness selling pressure at higher levels. Therefore, traders with a near-term view can make use of intra-day rallies to go short while maintaining a fixed stop-loss at 10,555 levels. The contract can test support at 10,530. Further decline below this support can drag the contract down to 10,500.

Next key supports below 10,500 are placed at 10,480 and 10,450. On the other hand, a decisive rally beyond the immediate resistance level of 10,555 can take the contract higher to 10,575 and 10,590 levels.

Strategy: Go short in rallies while maintaining a fixed stop-loss at 10,555

Supports: 10,530 and 10,500

Resistances : 10,555 and 10,575

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