Nifty May Futures (8,188)
The Nifty futures contract opened the session on a flat note at 8,245 levels and then started to decline.
However, after registering an intra-day low at 8,143 levels, the contract recovered some of its initial loss. As the contract trends higher, it experiences selling pressure.
The significant resistance at 8,250 levels is limiting the rally. The near-term outlook remains bearish as long as the contract trades below 8,250.
Traders with a short-term perspective can initiate fresh short position in rallies with a stop-loss at 8,250 levels.
Resumption of the downtrend can find supports at 8,175 and 8,150 levels. An emphatic fall below 8,150 will strengthen the bearish momentum and pull the contract down to 8,130 and 8,100 levels.
Having said that, a conclusive break of the immediate key resistance level at 8,250 can alter the outlook and take the contract northwards to 8,280 and 8,300 levels.
Strategy : Make use of rallies to initiate fresh short position with a stop-loss at 8,250 levels.
Supports : 8,175 and 8,150
Resistances: 8,225 and 8,250