Nifty Call: Stay out of the market

Nifty 50 July Futures (10,981)

Nifty 50 futures contract is trading volatile. The contract opened with a gap-up at 11,002 and made a high of 11,004. It failed to sustain the positive momentum and reversed sharply from the day’s high to a low of 10,942. The index futures has bounced back from the lows and is currently trading at 10,981.

The contract has been broadly range-bound between 10,930 and 11,075 over the last few days. A breakout on either side of this range will decide the next move. Traders can stay out of the market until a clear trend emerges.

Within this broad range, intermediate resistance is at 11,010. If the contract manages to breach this hurdle, an upmove to 11,050 or 11,075 is possible in the coming sessions. A strong break above 11,075 will turn the outlook positive. Such a break can then take the contract higher to 11,100 and 11,130.

On the other hand, if the contract remains below 11,010, it can dip again to test the 10,940-10,930 support zone. As long as the contract trades below 11,010, the possibility is high of it breaking below 10,930 in the coming sessions.

A break below 10,930 can take the contract lower to 10,910 and 10,900 initially. Further break below 10,900 will increase the likelihood of the index futures tumbling to 10,860 and 10,830 thereafter.

Strategy:  Stay out of the market

Supports: 10,930, 10,900

Resistances: 11,010, 11,050

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