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Nifty July futures (8,622)
The Nifty Futures July contract began the session on a negative note with a gap down open at 8,500 levels. However, the significant medium-term support at this level provided base for the contract. It marked an intra-day low at 8,491 levels, just below the support level and bounded up smartly. The subsequent bullish momentum has lifted the contract northwards breaking a key resistance at 8,550 levels. The near-term bullish momentum will remain intact as long as the contract trades above 8,550 levels.
Traders with a short-term perspective can make use of dips to buy the contract while maintaining a stop-loss at 8,575. The contract can extend its rally and test resistances at 8,630 and then at 8,650 levels. Only a conclusive breakthrough of 8,650 will further reinforce the bullish momentum and take the contract higher to 8,675 and 8,700 levels. Conversely, a fall below 8,550 will diminish the bullishness and pull the contract down to 8,530 and then to 8,500. An emphatic fall below 8,500 is needed to drag the contract down to 8,450.
Strategy : Buy the contract on dips with a stop-loss at 8,575
Supports : 8,600 and 8,575
Resistances : 8,635 and 8,650
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