The Nifty call: Initiate fresh shorts with fixed stop-loss on fall below 10,090

Nifty 50 September Futures (10,103)

The Nifty and the Sensex started the session with a gap-up open and extended their rally in initial hours of today's trading session. However, after witnessing profit taking at higher level, the benchmark indices gave away the gains and marginally slipped into negative territory.

The Nifty futures contract started the session in red at 10,087 levels. After marking an intra-day high of 10,143 the contract began to decline, experiencing selling interest.

The advances/declines ratio is biased towards declines. The Nifty futures contract could remain volatile with a negative bias. Traders with a near-term perspective should tread with caution and consider initiating fresh short positions with a fixed stop-loss on a decisive fall below the immediate support level of 10,090. In that case, the contract can decline to 10,070 and 10,050 levels.

Next key supports are at 10,030 and 10,000. Conversely, strong rally beyond the immediate resistance at 10,125 can push the contact higher to 10,144 levels. Key resistance is placed at 10,150. Strong rally beyond this level is required to reinforce the bullish momentum and take the contract higher to 10,175 levels.

Strategy: Consider initiating fresh shorts with a fixed stop-loss on a fall below the immediate support level of 10,090

Supports: 10,090 and 10,070

Resistances: 10,125 and 10,144

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