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Nifty 50 Feb Futures (10,512)
The Nifty 50 futures contract opened with a wide gap-up above 10,500 and made an intraday high of 10,538. However, it failed to sustain higher and has come-off from the day's high and is hovering around the psychological 10,500 mark.
Inability to sustain higher and extend the upmove reflects lack of strong follow-through buying in the market. Resistance is at 10,530 which has to be broken decisively for the index to move further higher.
Such a break will ease the downside pressure and take the contract higher to 10,550 and 10,580. Support is at 10,490. A break below it can bring back the selling pressure and drag the index futures lower to 10,470 initially.
Further break below 10,470 can take the contract lower to 10,440 or even lower thereafter. Traders with high risk appetite can go short on a break below 10,490.
Stop-loss can be placed at 10,510 for the target of 10,450. Revise the stop-loss lower to 10,480 as soon as the contract moves down to 10,470.
Strategy: Go short on a break below 10,490 with a stop-loss at 10,510
Supports : 10,490, 10,470
Resistances : 10,530, 10,550
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