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Nifty 50 September Futures (8,820)
The Nifty 50 futures contract has been facing strong resistance around 8,855 since Wednesday and is struggling to breach this hurdle. The contract made an intra-day high of 8,854.7 and has since come off that level. The immediate outlook is bearish. There intra-day chart shows a head and shoulder reversal pattern, which suggests a corrective fall breaking below 8,800 is likely. The neckline resistance of this pattern is at 8,825. A strong break below 8,800 can drag the contract lower to 8,760 or 8,750.
Traders with a short-term perspective can go short. Stop-loss can be placed at 8,845 for the target of 8,775.
The contract will gain fresh bullish momentum on a decisive break above 8,855. Such a break will then open the doors to a fresh rally to 8,900.
Strategy: Go short with a stop-loss at 8,845
Supports: 8,800, 8,760
Resistances: 8,825, 8,855
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