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Nifty 50 Feb Futures (11,040)
The Nifty 50 futures contract continues to trade under pressure. The bounce-back move after a gap-down open failed to gain momentum.
The contract made a high of 11,077 and has come-off from there. The outlook is bearish. A fall to test the next significant support region of 11,010-11,000 is possible now.
If the contract manages to reverse higher from this support zone, a relief rally to 11,070 or even 11,100 is possible. But if the index futures declines below 11,000, it can come under more selling pressure. In such a scenraio, the contract can fall to 10,950 or even 10,900 thereafter.
Short-term traders can wait for a bounce and go short at 11,070 and also at 11,090. Keep the stop-loss at 11,110 for the target of 11,010. Revise the stop-loss lower to 11,055 as soon as the contract moves down to 11,040.
The downside pressure will ease only if the contract breaks above 11,100 decisively. But such a strong break looks unlikely at the moment.
Strategy: Go short on rallies at 11,070 and 11,090 with a stop-loss at 11,110
Supports: 11,000, 10,950
Resistances: 11,090, 11,130
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