The Nifty call: Go short on a bounce at 9,885 with stop-loss at 9,905

Nifty 50 Oct futures (9,874)

The Nifty 50 futures contract is trading on a mixed note. Though the contract opened with a wide 95-point gap-up, it failed to sustain at those levels. It fell sharply from the day's high of 9,896 and has bounced back after making a low of 9,842. This bounce-back move lacks strength. Key resistance is in the 9,890-9,900 zone. Only a strong break above 9,900 will increase the likelihood of the rally extending to 9,940. But as long as the index futures remain below 9,900, a fall to 9,840 or 9,820 cannot be ruled out.

Traders with high risk appetite can go short on a bounce at 9,885. Stop-loss can be placed at 9,905 for the target of 9,845. Revise the stop-loss lower to 9,875 as soon as the contract moves down to 9,860.

Strategy : Go short on a bounce at 9,885 with a stop-loss at 9,905

Supports : 9,840, 9,8320

Resistances : 9,900, 9,940