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Nifty 50 August Futures (8,684)
Following a negative open at 8,739 levels, the Nifty futures contract moved into positive territory and recorded an intra-day high at 8,751.
However, the contract failed to move beyond the immediate key resistance at 8,755 and started to decline witnessing selling pressure. Thereafter, markets started reacting to the RBI's bi-monthly monetary policy statement, in which the RBI kept the repo rate unchanged at 6.5 per cent as inflation hit almost two-year high.
The Nifty futures contract fell below the key support level of 8,700 and went on to register an intra-day low at 8,661. The contract is down 0.6 per cent. The near-term stance is bearish.
Traders with a short-term perspective can make use of rallies to initiate fresh short positions while maintaining a stop-loss at 8,710 levels. Resumption of the downmove can pull the contract down to 8,675 and then to 8,650.
A decisive fall below 8,650 will open doors for further fall to 8,630 and then to 8,600 levels in the short term. Key resistances beyond 8,710 are placed at 8,730 and 8,755.
Strategy : Sell on rallies while retaining a fixed stop-loss at 8,710
Supports: 8,675 and 8,650
Resistances: 8,710 and 8,730
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