Nifty 50 Jan Futures (10,736)
The Nifty 50 futures contract is not gaining strength and is trading with a negative bias. Though it is managing to sustain above 10,700, it lacks fresh follow through buyers to take the contract to higher levels.
Key intraday resistance is at 10,770. A strong break above this hurdle is needed for the contract to gain fresh momentum. Such a break can take the index futures higher to 10,800 and 10,850 levels.
But as long as the index futures remain below 10,770, the possibility of it breaking below 10,700 is high. A break below 10,700 can bring fresh selling interest. In such a scenario, a fall to 10,660 or even to 10,620 is possible on the back of profit-booking.
Traders can go short on a break below 10,700. Stop-loss can be placed at 10,720 for the target of 10,660. Revise the stop-loss lower to 10,685 as soon as the contract moves down to 10,675.
Strategy : Go short on a break below 10,700 with a stop-loss at 10,720
Supports: 10,700, 10,660
Resistances : 10,770, 10,800