Nifty July Futures (8,336)
The Nifty July contract started the session on a flat note at 8,319. After marking an intra-day high at 8,353, the contract turned choppy and fell sharply to record an intra-day low at 8,293 levels.
Taking support in the band between 8,290 and 8,300, the contract bounced up. But the contract tests a key resistance at 8,350 levels and finds difficulty in breaching it.
A strong rally above 8,350 will be the cue to initiate long position with a stop-loss at 8,335 levels. Such a breakthrough can push the contract northwards to 8,375 and then to 8,400 levels.
But, on the downside if the contract falls below the key support band between 8,290 and 8,300, it can reinforce bearish momentum and pull the contract down to 8,265 and then to 8,240 levels.
Strategy : Fresh long position is recommended only on a strong rally above 8,350 levels with a stop-loss at 8,335 levels.
Supports : 8,320 and 8,290
Resistances : 8,375 and 8,400