The Nifty futures contract is witnessing a relief rally after a sharp fall last week.
The contract opened with a huge gap-up and has risen to make an intra-day high of 7,166. Immediate resistance is at 7,170 which is holding as of now. Support is at 7,130.
A reversal from 7,130 will increase the possibility of the contract breaking above the resistance at 7,170. Such a break can take the Nifty futures higher to 7,200.
Traders with a short-term perspective can wait for dips and go long near 7,130. Stop-loss can be kept at 7,110.
The above mentioned rise to 7,200 will get negated if the contract fails to reverse higher from the support at 7,130. A fall below this support can drag the contract to 7,100 today.
Strategy : Go long near 7,130 with a stop-loss at 7,110
Supports: 7,130, 7,100
Resistances: 7,170, 7,200