Nifty August Futures (8,518)
Though the Nifty futures opened the session on a positive note 8,570, it failed to sustain its positive momentum and entered the negative territory after experiencing selling pressure.
The contract has recorded an intra-day high at 8,577 levels. Volatility still persists in the contract. Rallies will struggle to move forward due to selling pressure at higher levels.
Traders with a short-term view can sell the contract on rallies with a stop-loss at 8,550 levels. It can re-test the support at 8,500. A strong fall below 8,500 will strengthen the downmove and pull the contract down to 8,470 and 8,450 levels.
To alter the bearish outlook, the contract needs to emphatically rally beyond 8,560 levels. It can then test the resistances at 8,577 and 8,600 levels.
Strategy : Sell the contract on rallies with stop-loss at 8,550
Supports : 8,500 and 8,470
Resistances : 8,550 and 8,577