The Nifty futures contract started the session with a gap-down at 7,358 decisively breaching the key support at 7,400.
After experiencing selling pressure, the contract extended its decline breaking the next support at 7,350 and landed at around 7,300 levels. The contract recorded an intra-day low at 7,287 and bounced up. It currently tests 7,300 levels.
The contract can extend its downtrend on a decisive fall below 7,300 and decline to 7,280 or even to 7,250 levels. Next supports are at 7,223 and 7,200 levels.
Therefore, traders with a short-term perspective can initiate short position on rallies with a stop-loss at 7,325 levels. On the other hand, only a strong rally above 7,350 will indicate that the contract is on a recovery mode and a corrective up move can push the contract higher to 7,375 and then to 7,400 levels.
Strategy : Initiate short position on rallies with a stop-loss at 7,325 levels.
Supports: 7,280 and 7,250
Resistances: 7,325 and 7,350