The Nifty 50 futures contract opened with a huge 100-point gap down at 7,475 and recorded a low of 7,454.
However, the contract has recovered sharply from this low and moved past the crucial 7,500 levels. Key intraday resistance is in the 7,550-7,565 zone.
A strong break above 7,565 can increase the momentum and take the contract higher to 7,600 during the day.
On the other hand, inability to breach 7,565 and a subsequent reversal can drag the contract lower to 7,500.
Traders can make use of this reversal to go short. Keep the stop-loss at 7,585 for the target of 7,505.
A fall below 7,500 can trigger a fall to 7,450-7,430 levels once again.
Strategy : Go short on a reversal from 7,565 with a stop-loss at 7,585
Supports : 7,500, 7,450
Resistances : 7,565, 7,600