Nifty March Futures (8,748)
The Nifty futures contract opened flat today at 8,760. The contract fell to a low of 8,727 after recording an intra-day high of 8,782. It is now reversing higher from this low.
The contract may test its resistance at 8,780 once again. However, the overall trend is down and the contract may find it difficult to breach its resistance at 8,780. The next important resistance above this level is at 8,800.
Traders can remain on the sidelines for now. If the contract moves up towards it key resistance, then traders can go short at 8,775. Stop-loss can be placed at 8,805 for the target of 8,735.
The contract has important support at 8,715. A break below this level can drag the Nifty futures contract to 8,680.
On the other hand, a strong break above 8,800 can ease the downside pressure and can take the contract higher to 8,825 and 8,860. However, at this juncture a break above 8,800 looks unlikely.
Strategy : Go short on rallies at 8,775 with a stop-loss at 8,805
Supports : 8,715, 8,680
Resistances : 8,780, 8,800