Nifty 50 July futures (8,395)
The domestic indices are extending their rally, taking cues from their positive Asian peers. The Nikkei is up 0.6 per cent to 15,775, Hang Seng is up 1.2 per cent to 21,042 and CSI 300 surged 1.6 per cent to reach 3,204 on Monday.
The Nifty futures July contract started the week on a positive note at 8,385 and continued its rally to mark an intra-day low at 8,415 levels. The near-term outlook is bullish.
Traders with a short-term view can make use of declines to buy the contract while maintaining a stop-loss at 8,385 levels. Continuation of the uptrend could help the contract re-test the intraday high at 8,415 and then rally to 8,430 or 8,450 levels in the near term. Conversely, a decisive fall below the key support at 8,350 will alter the positive outlook and pull the contract down to 8,325 and 8,300 levels.
Immediate support is at 8,385.
Strategy: Initiate long positions on dips with stop-loss at 8,385
Supports: 8,350 and 8,325
Resistances: 8,415 and 8,430