Nifty August Futures (8,532)
On Friday, the Nifty futures contract started the session with a bang, with an upward gap at 8,444 levels, decisively breaking the resistance at 8,400 levels. This bullish momentum was maintained even after the contract touched an intra-day low at 8,402 levels.
The key resistance levels at 8,450 and 8,500 has been breached by the contract. It registered an intra-day high at 8,534 levels and hovers around these levels.
Traders with a short-term view can buy the contract on dips while maintaining a stop-loss at 8,490 levels.
Corrective declines can make the stock find support at 8,500 or 8,480. Subsequent targets are 8,540 and 8,560 levels.
However, an emphatic fall below the key support level at 8,450 will diminish the bullish momentum and pull the contract down to 8,400 levels which is a significant support level. Further fall below this level can test support at 8,380 and 8,350 levels.
Strategy : Buy in declines with a stop-loss at 8,490
Supports : 8,500 and 8,480
Resistances : 8,540 and 8,560