The Nifty futures contract started the session with a gap up open at 8,566. After marking an intra-day high of 8,588, the contract began to witness selling pressure and declined to record an intra-day low of 8,543 levels. The contract managed to stay above the previous close, keeping the gap open. Key resistance at 8,575 is limiting the contract from further rally.
A decisive rally above this level will strengthen the bullish momentum and take the contract higher to 8,588 and 8,600. Next important resistance is placed at 8,620 levels.
On the other hand, a decisive tumble below the immediate support at 8,540 levels will fill the gap and pull the contract down to 8,520 and then to 8,500.
Traders with short-term perspective should tread with caution and initiate fresh short position only on a fall below 8,540 with a stop-loss at 8,550 levels. Subsequent, key support is placed at 8,475 levels.
Strategy : Initiate fresh shorts on a fall below 8,540 with a stop-loss at 8,550
Support : 8,540 and 8,520
Resistance : 8,575 and 8,600