Nifty February Futures (8,851)
The Nifty futures contract started the session on a positive note at 8,900 level from its previous close of 8,891. But this positive momentum was short-lived and after recording an intra-day high at 8,920 levels, the contract fell sharply.
The contract then found support at around 8,821 levels and is attempting to gain bullish momentum.
Traders with a short-term perspective should tread with caution and initiate fresh long position only on a strong move above 8,870 levels with a fixed stop-loss.
Such a rally can push the contract higher to the resistance band between 8,890 and 8,900. An emphatic breakthrough of the band is required to reinforce bullish momentum and take the contract higher to 8,920 and 8,950 levels in the near term.
Having said that, failure to rally above 8,870 can keep the contract under selling pressure and moving sideways in the range between 8,820 and 8,870. Strong fall below 8,820 will pull it down to 8,800 and then to 8,780 levels.
Strategy : Stay cautious and initiate long position only on a rally above 8,870 levels with a fixed stop-loss.
Supports: 8,820 and 8,800
Resistances : 8,870 and 8,900