Nifty 50 August Futures (9,771) Triggered by negative global cues, the Nifty and the Sensex started the session with a gap-down, tumbling about one per cent.
The Dow Jones Industrial Average fell 0.9 per cent on Thursday to close at 21,844, and the S&P 500 index plunged 1.45 per cent to 2,438 levels. The Nasdaq Composite index tumbled more than 2 per cent to close at 6,216 levels. Asian stocks also featured in negative territory, taking cues from the US markets.
The Nifty futures contract started the session with a gap-down at 9,776 levels. After marking an intra-day low of 9,748, the contract began to recover, witnessing buying interest at lower levels. It has registered an intra-day high of 9,800 levels.
The underlying Nifty index is also on the recovery path; however, the near-term outlook remains bearish. The market breadth is biased towards declines. Selling pressure could emerge at higher levels.
Traders with a short-term perspective can go short if the contract reverses down from 9,800 levels, with a fixed stop-loss at 9,810 levels. The contract can decline to 9,750 levels. A further decline below 9,750 can pull the contact down to 9,730 and 9,700 levels in the short term. Key resistances above 9,800 are at 9,825 and 9,850.
Strategy: Sell on rallies with stop-loss at 9,810
Supports: 9,750 and 9,730
Resistances: 9,800 and 9,825