Nifty call: Initiate fresh short positions on declines below 9,950

Nifty 50 September Futures (9,957) The Asian markets started the session on a positive note but began to experience selling pressure thereafter.

The Nikkei 225 index started to decline after opening with a gap-up. It is marginally up by 38 points or 0.2 per cent at 19,396 levels.

The Hang Seng index also began the session on a positive note, but has slipped into the red now. It is down 72 points or 0.26 per cent at 27,541 levels.

Similarly, the Nifty and Sensex started the session with a gap-up open and later began to decline, witnessing selling pressure.

The Nifty futures contract opened with an upward gap at 9,958 levels. After marking an intra-day high of 9,982, the contract began to decline on the back of selling pressure. It recorded an intra-day low of 9,947 and tests a key support at 9,950 levels.

The market breadth is slightly biased towards advances. Traders with a near-term perspective should tread with caution and can consider initiating fresh short positions only if the contract declines below 9,950 levels with a fixed stop-loss.

The contract can decline and test supports at 9,930 and 9,910 levels in the near term. On the other hand, a strong rally beyond 9,980 can bring back the bullish momentum and push the contract higher to 10,000 levels.

The next key resistance is at 10,025 and 10,050 levels.

Strategy: Initiate fresh short positions if the contract declines below 9,950

Supports: 9,950 and 9,930

Resistances: 9,980 and 10,000

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





MORE FROM BUSINESSLINE


 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor