The Nifty Futures contract opened gap up at 8,662 after a long hiatus on Monday. After marking an intra-day high at 8,664, the contract began to witness selling pressure and gave away its intra-day gains. The contract recorded an intra-day low at 8,607, just above its key support level of 8,600, and is now hovering around this level.
A decisive fall below the immediate support level of 8,600 will be cue for initiating fresh short position with a stop-loss at 8,615 levels. Such a fall can pull the contract down to 8,574 and then to 8,550 levels. Next key supports are pegged at 8,530 and 8,500. On the upside, the contract needs to rally conclusively above 8,662 for an up move to 8,684 and 8,700 levels.
Strategy: Initiate fresh short position only on a strong fall below the immediate support level of 8,600 with a stop-loss at 8,615 levels.
Supports: 8,600 and 8,574
Resistances: 8,640 and 8,662
Source : Business Line