Nifty October Futures (7,880)
The Nifty futures contract opened the session at 7,869 levels and spiked sharply breaking the key resistance at 7,900 levels. But after marking an intra-day high at 7,919 levels, the contract failed to sustain above the key resistance and gave away its gains.
Volatile movement is continuing in the contract and therefore traders with a short-term perspective should tread with caution.
Make use of the rallies to initiate fresh short position, while maintaining a stop-loss at 7,910 levels. A downward reversal can drag the contract down to 7,870 initially and then to 7,850. Subsequent support is pegged at 7,820 levels.
Conversely, the contract needs to decisively rally above the key resistance band between 7,930 and 7,950 to reinforce bullish momentum. Next resistances are at 7,970 and 7,990 levels.
Strategy : Sell in rallies with a stop-loss at 7,910
Supports : 7,870 and 7,850
Resistances: 7,930 and 7,950