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Nifty 50 April Futures (10,571)
The price action over the last few days clearly indicates that the Nifty 50 futures contract is lacking fresh momentum to take it higher.
Though the contract bounced back from its intraday low of 10,532 on Wednesday, it has failed to continue the upmove today. The contract made a high f 10,594 and has come-off from there.
Strong resistance is in the 10,585-10,600 zone which is likely to cap the upside during the day. A revisit of 10,530 is possible in the coming sessions.
A break below 10,530 can drag the contract lower to 10,500. Further break below 10,500 will increase the likelihood of the contract tumbling towards 10,460 or even 10,400 thereafter.
Traders can go short at current levels and on rallies at 10,585. Stop-loss can be placed at 10,605 for the target 10,505. Revise the stop-loss lower to 10,555 as soon as the contract moves down to 10,540.
The downside pressure will ease only if the index futures breaks above 10,600. The next target is 10,635. However, the contract needs to breach 10,635 decisively to regain bullish momentum.
Strategy : Go short at current levels and at 10,585 with a stop-loss at 10,605
Supports : 10,530, 10,500
Resistances: 10,585, 10,600
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