Nifty 50 February Futures (8,653)

The Nifty started the week on a negative note with a gap-down opening at 8,645 levels. Thereafter it continues to trade sideways in a narrow intra-day range between 8,636 and 8,666 levels.

The Nifty 50 index is also trading sideways in a narrow range. The market breadth is biased towards declines.

Asian shares declined, Nikkei 225 was down 0.5 per cent at 19,368 and Hang Seng index fell marginally by 0.06 per cent to 23,360.7 levels.

Domestic indices turned cautious on Monday ahead of Budget 2017 after a strong rally in the previous week.

Traders with a short-term perspective should desist trading in the Nifty February futures contract as long as it trades in the band between 8,636 and 8,670.

Only a strong fall below the immediate support level of 8,636 will be a cue for initiating fresh short positions with a fixed stop-loss.

Next key supports are at 8,620 and 8,600 levels. On further slump below 8,600, the contract can test supports at 8,580 and 8,550 levels. Key resistance beyond 8,670 is in the band between 8,690 and 8,700. Subsequent resistance is placed at 8,720 levels.

Strategy: Desist trading in the contract as long as it trades in a sideways band.

Supports: 8,636 and 8,620

Resistances: 8,700 and 8,720