The Nifty 50 futures contract is trading on a weak note. It opened with an upward gap but failed to gather momentum to breach the psychological 7,600 level.
It has reversed sharply lower from the day’s high of 7,600 to record a low of 7,506. The contract is currently hovering above its next key support level of 7,500.
A strong break below this support will increase the selling pressure and drag it lower to 7,450 and 7,430. Resistances are at 7,535 and 7,550. The contract can run into fresh selling pressure on an intraday bounce to these levels.
Traders with a short-term perspective can go short. Stop-loss can be kept at 7,555 for the target of 7,480.
Only a strong break above 7,550 will ease the downside pressure. Such a break can keep the contract inside a sideways range between 7,500 and 7,600 for some time.
Strategy : Go short with a stop-loss at 7,555
Supports : 7,500, 7,450
Resistances: 7,535, 7,550