Nifty 50 February Futures (8,727)

The Nifty futures started the session on a negative note by opening at 8,730 levels. It recorded an intra-day high at 8,737 but failed to sustain the momentum. After witnessing selling pressure the contract declined and registered an intra-day low at 8,697 levels. The immediate key support at 8,700 is cushioning the fall in the contract.

As long as the contract trades above this level it can bounce back. It is likely to remain in a sideways band between 8,700 and 8,737. However a strong slump below the immediate support level of 8,700, can take the contract down to 8,680 and 8,650 levels. Traders with a short-term perspective should tread with caution as long as the contract trades in the aforementioned sideways range. Strong rally beyond 8,737, can take the contract higher to 8,750 and then to 8,775 levels in the near term.

Strategy: Tread with caution

Supports: 8,700 and 8,680

Resistances: 8,737 and 8,750