Nifty November Futures (8,397)
The Nifty futures is trading on a weak note today in spite of a strong consumer price index (CPI) and the index of the industrial production (IIP) data release on Wednesday.
The contract opened with a gap up at 8,430.5. But it failed to hold on to its gain and fell immediately below the psychological 8,400 level. Price action of the reversal from the intra-day low of 8,372.3 on the chart lacks momentum. This leaves open the possibility of the contract remaining below 8,400 and declining from those levels.
Significant intra-day resistances are at 8,410 and 8,430. A strong break above 8,430 is required now for the contract to gain bullish momentum and target 8,450 and 8,475 levels.
Having said this, Nifty futures can move down to test its supports at 8,375 and 8,360 during the day. Intra-day traders can go short with a stop-loss at 8,420 for the target of 8,365.
A strong break below 8,360 will increase the downside pressure on Nifty futures for a fall to 8,300.
Strategy : Go short with a stop-loss at 8,420
Supports : 8,375, 8,360
Resistances : 8,410, 8,430