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Nifty 50 Aug Futures (9,898)
The Nifty 50 futures contract seems to be struggling to go up. The contract made a gap-up opening at 9,927 this morning and hit a high of 9,940.
However, it failed to sustain at this level and dropped to an intraday low of 9,881. The contract is now trying to move up from this low but seems to lack strength. Intermediate resistance is at 9,920 which may cap the upside.
A pull-back after testing the resistance at 9,920 can drag the contract below 9,900 once again. A significant support is at 9,880. A strong break below this level will increase the likelihood of the contract falling to 9,850 or even 9,825 thereafter.
Traders can make use of rallies to go short at 9,910. Stop-loss can be placed at 9,935 for the target of 9,960. Revise the stop-loss lower to 9,895 as soon as the contract moves down to 9,885.
The region around 9,940 is a key intraday resistance. The contract will gain strength only if it surpasses this hurdle. The next targets are 9,980 and 10,000.
Strategy : Go short on rallies at 9,910
Supports : 9,880, 9,850
Resistances: 9,920, 9,940
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