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Nifty May Futures (8,095)
The Nifty futures contract is continuing to trade weak. The contract rose to a high of 8,148.7 after opening lower at 8,087.7. However, it failed to sustain at higher levels and reversed sharply lower again. Resistances are at 8,120 and 8,140.
The contract could attract fresh sellers above 8,100 and so the upside is expected to be capped for the rest of the day. Having said this, a fall to test the support at 8,060 is possible. A break below this support can take it further lower to 8,030 during the day.
Traders can go short. Stop-loss can be kept at 8,125 for the target of 8,045. Intraday bounce to 8,120, if seen, can be used to accumulate shorts.
The downside pressure will ease only if the contract breaks above 8,140 decisively. But such a break looks unlikely at the moment.
Strategy : Go short with a stop-loss at 8,125
Supports : 8,060, 8,030
Resistances : 8,120, 8,140
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