Nifty February Futures (8,882)
The Nifty futures contract started the session on a negative note at 8,905 level. After witnessing selling pressure, the contract slumped in early trading hours to mark an intra-day low at 8,830 level.
However, the contract bounced up taking support around 8,835 levels and breached key resistances at 8,860 and 8,880 levels. It is finding difficulty in surpassing the important resistances at 8,900 and 8,920 levels.
Currently, the contract is just hovering above the key support at 8,880. A slip below this base can make the contract find support at the next significant base level of 8,860.
Traders with a short-term perspective can make use of dips to buy the contract while maintaining a tight stop-loss at 8,855 levels. Next important supports are placed at 8,835 and 8,800 levels.
On the other hand, an emphatic rally above 8,900 can retest the next resistance at 8,920 levels. Key resistance above 8,920 is at 8,950 levels.
Strategy : Make use of dips to buy the contract with a tight stop-loss at 8,855 levels.
Supports : 8,860 and 8,835
Resistances: 8,900 and 8,920