Nifty 50 February Futures (8,804)

The Nifty futures contract started the session on a positive note by opening at 8,824. But after recording an intra-day high at 8,828, the contract started to decline witnessing selling pressure. It breached key immediate support at 8,800 and fell to record an intra-day low at 8,786 levels. The contract is moving in a narrow range with negative bias. The market breadth in the Nifty 50 index is biased towards declines.

Traders with a short-term perspective should tread with caution as long as the contract moves sideways in the range between 8,785 and 8,825. An emphatic fall below 8,785 can strengthen selling pressure and pull the contract down to 8,770 and 8,750 levels.

On the other hand, a strong rally beyond 8,825 can diminish the selling pressure and take the contract higher to 8,850. A further rally beyond 8,850 can push the contract higher to 8,875 and 8,900 levels in the short term.

Strategy: In a sideways movement. Tread with caution.

Supports: 8,785 and 8,770

Resistances: 8,825 and 8,850