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Nifty 50 June Futures (10,784)
The Nifty 50 futures has begun the expiry week on a weak note. The contract opened with a wide 50-point gap-down at 10,784.95 and fell to a low of 10,776.6.
Though it has bounced back from the day’s low, the price action indicates that the contract lacks strength. The index futures made a high of 10,819.9 and has come-off from the psychological 10,800 mark again.
The near-term view is mixed. Cluster of moving average supports are poised between 10,775 and 10,750. Key resistances are at 10,815 and then in the 10,840-10,850 region.
The contract can remain range bound between 10,750 and 10,850 for a few sessions. A breakout on either side of 10,750 or 10,850 will determine the next trend.
A break below 10,750 can take the contract lower to 10,735 initially. Further break below 10,735 will then drag it to 10,700 or even lower levels.
On the other hand, if the index futures manage to breach 10,850 decisively, it can gain fresh momentum. In such a scenario, the contract can rally to 10,880 and 10,900 thereafter.
Traders can stay out of the market until a clear trend emerges.
Strategy : Stay out of the market
Supports: 10,750, 10,735
Resistances : 10,815, 10,850
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