Nifty call: Make use of intra-day rallies to go short

Nifty 50 September Futures (9,952)

Asian markets were trading mixed in today's session. The Nikkei 225 index was down 0.6 per cent at 19,274 whereas Hang Seng index was up 0.5 per cent at 27,658.

Both the Nifty and the Sensex started the session on a positive note and were struggling to gain bullish momentum. The bellwether indices were trading choppy with a negative bias.

Nifty September futures contract started the session with a gap-up opening at 9,973 and recorded an intra-day high of 9,978. However, after experiencing selling pressure, the contract began to decline. Moreover, the contract has narrowed its premium gap against the Nifty index to just 10 points.

The contract marked an intra-day low of 9,933 and recovered slightly. It currently trades at around 9,950 with a negative bias. The market breadth of the Nifty index is biased towards declines.

Traders with a near-term view can make use of intra-day rallies to initiate fresh short positions with a stop-loss at 9,965. The contract can decline further and test its immediate support at 9,930.

Further decline below 9,930 can pull it down to 9,910 or 9,900 levels. Next key supports are at placed at 9,880 and 9,850 levels. On the other hand, vital resistances are at 9,975 and 10,000.

Strategy: Make use of intra-day rallies to go short with a stop-loss at 9,965

Supports: 9,930 and 9,910

Resistances: 9,975 and 10,000

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