After a negative open at 8,595, the Nifty futures contract declined and recorded an intra-day low at 8,570. However, after witnessing buying interest, the contract bounced back from this low and breached a key immediate resistance at 8,600 levels. The contract marked an intra-day high at 8,630 and is facing difficulty in breaking the key resistance band between 8,625 and 8,630. Traders should tread with caution as long as the contract tests this resistance band. Only a strong breakthrough of 8,630 will be positive and attract fresh buying in to the market. In that case traders with a short-term view can initiate fresh long positions with a stop-loss at 8,615. Key resistances beyond 8,630 are at 8,650 and 8,675 levels. Conversely, a decisive fall below the immediate support at 8,600 can bring back selling pressure and drag the contract down to 8,570 and 8,550 levels. Subsequent supports are placed at 8,530 and 8,500 levels.
Strategy: Fresh long positions can be initiated only on a strong rally beyond 8,630 levels with a stop-loss at 8,615 levels.
Supports: 8,600 and 8,570
Resistances: 8,630 and 8,650
[Source: Hindu Business line]
