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The Nifty futures contract began the session with a gap down open at 7,205. Recording an intra-day high of 7,214, the contract resumed its downtrend; it decisively breached the key supports at 7,200.
However, the contract appears to have found a temporary base at the intra-day low of 7,133 levels. The near-term outlook continues to be bearish. The contract trades well below its 21 and 50-day moving averages. Indicators and oscillators in the daily chart are featuring in the bearish zone backing the downtrend.
Traders with a short-term perspective can make use of rallies to initiate fresh short position with a stop-loss at 7,160 levels.
Resumption of the downtrend can make the index retest the intra-day low at 7,133 and then 7,100 levels. Subsequent supports are at 6,950 or 6,900 levels.
On the other hand, a strong rally above the resistance level of 7,175 can result in a corrective up move to 7,200 or 7,220 level.
Strategy : Sell in rallies with a stop-loss at 7,160
Supports : 7,133 and 7,100
Resistances: 7,150 and 7,175
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