Following a gap up opening, Nifty futures declined, filling this gap and then bounced up. However, this recovery is finding it difficult to rally beyond 7,285.
After a brief move above this level, the index futures slipped and is currently trading below this hurdle. Moreover, it has another significant psychological resistance at 7,300. A decisive rally above this level will be the cue for going long on the contract. In that event, Nifty futures can trend higher to 7,320 and then to 7,350.
However, as long as the contract trades below 7,285, traders can maintain their short position. Decline below 7,255 can pull the contact down to 7,230 and then to 7,200.
Strategy : Hold your short position with a stop-loss at 7,285.
Supports : 7,255, 7,230 and 7,200.
Resistances : 7,285 7,300 and 7,320.
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