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Nifty 50 Feb Futures (10,375)
The Nifty 50 futures contract has been struggling to breach the 10,400 level decisively over the last few days. This indicates lack of strong follow-through buying to take the contract decisively above the psychological 10,400 mark.
The region between 10,400 and 10,420 is a strong resistance. Only a strong break above 10,420 will ease the downside pressure and trigger a fresh rally towards 10,470. But the price action on the charts suggests that such a strong rally is not very probable. As long as the contract remains below 10,420, the outlook will be bearish. A fall to 10,300 or even 10,260 is likely in the short-term.
Traders can wait for rallies and go short at 10,395 and 10,415. Stop-loss can be placed at 10,425 for the target of 10,330. Revise the stop-loss lower to 10,385 as soon as the contract moves down to 10,370.
Strategy: Go short on rallies with stop-loss at 10,425
S upports: 10,330, 10,300
Resistances: 10,420, 10,470
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