Nifty August Futures (7,672)
After testing the key resistance at 7,800 on July 24, the Nifty futures contract has been volatile and is moving sideways in a narrow band between 7,600 and 7,800.
The contract is witnessing selling pressure in rallies. It opened on a negative note at 7,679 and recovered to register an intra-day high at 7,710 levels. However, the contract failed to decisively breach the key resistance level of 7,700 and began to decline.
Traders with a near-term perspective can make use of the rallies to initiate fresh short position with a stop-loss maintained at 7,700 levels. Intra-day targets are 7,650 and 7,622. Next key base level is the lower boundary of the narrow sideways range 7,600 levels.
But, a conclusive rally above 7,710 can take the contract higher to 7,725 and then to 7,750 levels. Subsequent, resistance is pegged at 7,772 levels.
Strategy : Initiate short position with a stop-loss at 7,700
Supports : 7,650 and 7,622
Resistances : 7,710 and 7,725