Nifty Call: Make use of intra-day rallies to initiate fresh short positions

Nifty 50 September Futures (9,919)

Taking cues from weak Asian markets, the Nifty and Sensex started the session in the red. The Nikkei 225 index was down 183 points or 0.9 per cent at 19,508 levels and Hang Seng index was also down by 0.9 per cent at 27,700 levels.

Domestic indices subsequently extended their declines witnessing selling pressure. The Nifty and Sensex fell almost 1 per cent. The market breadth of the Nifty index is biased towards declines.

The Nifty September futures contract started the session marginally in the positive territory at 10,009 and slipped into the red. The contract also fell more than 1 per cent intra-day. It recorded an intra-day low of 9,887 per cent. But the contract is now experiencing a corrective up-move and has moved above 9,900 levels.

Traders with a near-term view can make use of the corrective rallies to initiate fresh short positions as the near-term view is bearish. Stop-loss can be maintained at 9,950 levels.

Resumption of the down move can retest the support at 9,900 and further fall below this level can drag the contract down to 9,880 and 9,850-9860 range. Key resistances are placed at 9,950, 9,975 and 10,000 levels.

Strategy: Make use of intra-day rallies to initiate fresh short positions with a stop-loss at 9,950 levels.

Supports: 9,900 and 9,880

Resistances: 9,950 and 9,975

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