Nifty August Futures (8,576)
The Nifty futures contract is stuck inside a sideways range between the support at 8,560 and the resistance at 8,600. The immediate outlook is not very clear. A breakout on either side of this range will decide the next leg of the move for the contract. Traders can stay out of the market at the moment.
A strong break above 8,600 will be bullish. It can take the contract higher to 8,650 and 8,670. On the other hand, a break below 8,560 can drag it to 8,530 and 8,500.
The contract has been struggling to breach 8,600 since Wednesday. So there is a possibility of a break of the current range downward. Short-term traders can go short if the contract breaks below 8,560 with a stop-loss at 8,575 for the target of 8,530.
Strategy: Go short below 8,560
Supports : 8,560, 8,530
Resistances: 8,600, 8,650