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

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