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Nifty 50 April Futures (10,585)
The crucial resistance level of 10,635 held up well on Tuesday. The Nifty 50 futures contract made a high of 10,634, but failed to break above it. The gap-down open today gives an early indication that the corrective rally that has been in place since March could be coming to an end.
The near-term outlook will remain bearish as long as the contract trades below 10,600. A fall to 10,565 and 10,555 looks likely. Further break below 10,555 will then increase the likelihood of the contract falling to 10,530 or even 10,500.
Short-term traders with a high risk appetite can go short at current levels and at 10,595. Stop-loss can be placed at 10,605 for the target of 10,540. Revise the stop-loss lower to 10,575 as soon as the contract moves down to 10,560.
The downside pressure will ease only if the contract breaks above 10,600, Such a break can take the index futures higher to 10,635 again.
Strategy : Go short with a stop-loss at 10,605
Supports : 10,555, 10,530
Resistances: 10,600, 10,635
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