Nifty May futures (8,166)
The Nifty futures contract has been in a short-term downtrend since the April peak of 8,873. As the contract approached the key support level at 8,200 a week ago, it turned volatile, sharply moving up and down.
On Tuesday, the contract opened in negative territory at 8,329 and fell sharply. The contract has tumbled more than 170 points or 2 per cent in today's session, witnessing selling pressure.
The short-term outlook for the contract is bearish. Traders with a short-term perspective can consider holding their short positions and can initiate fresh short positions on rallies with a stop-loss at 8,210 levels. The contract can extend its decline and reach immediate support at 8,140 and then at 8,120 levels. The next key supports are placed at 8,100 and 8,080 levels.
Conversely, the contract needs to conclusively rally above the 200-day moving average line poised at around 8,300 levels. Immediate resistances are at 8,200, 8,225 and 8,250 levels.
Strategy: Make use of rallies to initiate fresh short positions with a stop-loss at 8,210
Supports: 8,140 and 8,120
Resistances: 8,200 and 8,225
No comments:
Post a Comment