Nifty 50 Feb Futures (10,395) After consolidating in a narrow sideways range all through last week, the Nifty 50 futures contract has begun the week on a weak note. Though the contract opened with a gap-up, it failed to sustain higher and has come-off sharply from the day's high of 10,485, indicating weakness. It also increases the possibility of the overall downtrend resuming in the coming days.
A key intraday resistance between 10,420 and 10,430 is likely to cap the upside. Rallies to this resistance zone can find fresh sellers coming into the market. A fall to 10,340 is likely now. A break below 10,340 will see the down-move extending towards 10,300 or even lower thereafter. Traders can go short at current levels and on rallies to 10,415.
Stop-loss can be placed at 10,430 for the target of 10,340. Revise the stop-loss lower to 10,385 as soon as the contract moves down to 10,370. The downside pressure will ease only if the contract breaks above 10,430. Such a break, though unlikely at the moment, can take the index futures higher to 10,470
Strategy: Go short at current levels and on rallies to 10,415 with a stop-loss at 10,430
S upports: 10,340, 10,300
Resistances: 10,430, 10,470
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