Nifty September Futures (8,023)
The Nifty futures contract opened slightly lower on Wednesday at 8,024. After recording a high of 8,049.80, it has reversed lower again.
The contract is continuing to remain pressured after a sharp 1.5 per cent fall on Tuesday. The outlook is bearish. Resistance is at 8,050. A fall to test the next support at 7,980 looks likely now. A break of this level can drag the contract further lower to 7,950 during the day.
Traders can go short with a stop-loss at 8,055 for the target of 7,980. Traders with high risk appetite can hold the short for a wider target of 7,960 while retaining the stop-loss at 8,055.
The contract would get some relief if it breaches 8,050 during the day. Such a break can take it higher to 8,077 – the 21-day moving average resistance level.
Strategy : Go short with a stop-loss at 8,055
Supports : 7,980, 7950
Resistances : 8,050, 8,077