Nifty 50 August Futures (8,695)
The Nifty 50 futures contract is trading on a positive note. It opened with a gap-up at 8,655 and rose to a high of 8,713. However, the contract has come-off from this high and is now trading below the psychological 8,700 level. Immediate support is at 8,685. If the contract manages to reverse higher from this support and subsequently breaks above the resistance at 8,710, it can take the index futures higher to 8,735 and 8,750.
Traders with a short-term perspective can go long on a reversal from 8,685 with a stop-loss at 8,660 for the target of 8,730.
But if the contract breaks below 8,685, it can fall to 8,665 and 8,650 during the day. In such a scenario, the 8,600-8,700 sideways movement will remain intact and the contract may continue to trade within this range for some more time.
Strategy : Go long on a reversal from 8,685 with a stop-loss at 8,660
Supports : 8,685, 8,665
Resistances : 8,710, 8,735