Nifty August Futures (7,632)
The Nifty futures contract started the week on a positive note, opening with an upward gap at 7,651. However, the contract is unable to move beyond the key resistance at 7,650 levels.
It is currently witnessing selling pressure and is moving sideways with a negative bias. The premium gap between Nifty and Nifty futures contract has decreased to 11 points.
Traders with a near-term perspective should tread with caution and can initiate short position if the contract fails to move above 7,650, while maintaining this level as a stop-loss. The supports to watch are pegged at 7,622 and 7,600.
A strong fall below 7,600 will reinforce bearish momentum and drag the contract down to 7,560 levels. Conversely, to bring back bullish momentum, the contract needs to decisively rally above 7,675 to move above 7,700.
Strategy : Consider initiating short position if the contract fails to move above 7,650 levels with the same level as a stop-loss.
Supports : 7,622 and 7,600
Resistances : 7,675 and 7,700