Nifty Call: Go short on rallies at 10,685 with a stop-loss at 10,710

Nifty 50 June Futures (10,665)

The Nifty 50 futures contract has tumbled after opening with a wide gap-up. The contract opened at the day's high of 10,732 and fell sharply to make a low of 10,621.

Though it has reversed higher from the day's low, the bounce back move lacks strength. Strong resistance is in the 10,690-10,700 region which is likely to cap the upside.

Though a test of this hurdle is likely, a break above 10,700 looks less probable. Support is at 10,650. A break below it can take the contract lower to 10,630 or 10,610.

Traders with a short-term perspective can make use of rallies and go short at 10,685. Stop-loss can be placed at 10,710 for the target of 10,640. Revise the stop-loss lower to 10,670 as soon as the contract moves down to 10,655.

Strategy :  Go short on rallies at 10,685 with a stop-loss at 10,710

Supports : 10,650, 10,630

Resistances : 10,700, 10,730

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