Nifty July Futures (8,534) The Nifty futures July contract started the session on a par with its previous close of 8,537 levels. It then rallied to mark an intra-day high at 8,561 levels. Testing resistance in the band between 8,550 and 8,560, the contract started to decline.
This resistance band is limiting the upside for the contract. Only a decisive breakthrough of this band between 8,550 and 8,560 will pave the way for an up-move to 8,580 and then to 8,600 levels. Therefore, traders with a short-term perspective should tread with caution and initiate fresh long positions only on decisive rallies above 8,560 levels with a fixed stop-loss.
A strong fall below 8,520 can find support at 8,500 levels. A further fall will intensify the bearish momentum and pull the contract down to 8,475 and then to 8,450 levels in the near term. In that scenario, traders can consider initiating fresh short positions.
Strategy: Fresh long positions are recommended with a fixed stop-loss only on strong rallies above 8,560 levels
Supports: 8,520 and 8,500
Resistances: 8,560 and 8,580