Nifty 50 March Futures (10,206)
The Nifty 50 futures contract is getting strong support near 10,150. The price action over the last couple of days indicate that the contract lacks strong sellers below 10,200. This increases the likelihood of a relief rally in the coming sessions on the back of short-covering. Resistance is at 10,220. A strong break above it can take this relief rally higher to 10,255 and 10,300 in the coming sessions.
Short-term traders with a high-risk appetite can go long on a break above 10,220. Stop-loss can be placed at 10,190 for the target of 10,280. Revise the stop-loss higher to 10,240 as soon as the contract moves up to 10,250.
On the other hand, if the index futures fails to break above 10,220, it can fall back to 10,150 again. In such a scenario, a range-bound move between 10,150 and 10,220 can be seen for some time. A strong break below 10,150 will then see the downtrend resuming and can decline to 10,100 or even lower levels thereafter.
Strategy: Go long on a break above 10,220 with a stop-loss at 10,190.
Supports: 10,150; 10,100
Resistances: 10,220; 10,255
