Nifty 50 Sep Futures (9,740)
The Nifty 50 futures contract is getting a breather after having fallen sharply over the last one week.
The contract made a low of 9,695 and has bounced higher from there. This bounce back move is facing resistance at 9,750 and the contract is stuck in a narrow range around this hurdle.
If the contract manages to break above 9,750, a rise to 9,785 or 9,800 is possible in the coming sessions. The region between 9,785 and 9,800 is a strong resistance zone which can cap the upside.
Fresh selling interest may emerge at higher levels and the contract can reverse lower again, thereby keeping the overall downtrend intact.
The contract will come under pressure again on a decisive break below 9,700. Such a break can drag the index futures lower to 9,640 or even 9,620.
Traders can go short on a fall below 9,700. Stop-loss can be placed at 9,725 for the target of 9,645. Revise the stop-loss lower to 9,685 as soon as the contract moves down to 9,670.
Strategy: Go short on a break below 9,700 with stop-loss at 9,725
Supports: 9,700, 9,640
Resistances : 9,750, 9,785