Nifty July Futures (7,705)
The Nifty futures contract opened with a gap up at 7,754 and started moving sideways.
After witnessing selling pressure, the contract breached its key support at 7,735 and 7,720. Its next important support at 7,700 also failed to arrest the contract’s fall. However, after registering an intra-day low of 7,676, the contact has recovered and is now trading around 7,700 levels.
Traders with a short-term perspective can sell the contract with a stop-loss at 7,725 levels. Resumption of the intra-day downtrend can drag the contract down to 7,676 once again and then to 7,650. Next significant supports are pegged at 7,623 and 7,600.
On the upside, the contract needs to decisively rally above 7,735 to strengthen bullishness and take it higher to 7,750 and 7,775.
Strategy : Go short with a stop-loss at 7,725.
Supports : 7,676, 7,650 and 7,623
Resistances : 7,720, 7,735 and 7,750.