Nifty April Futures (8,640)
The Nifty futures contract started the session on a positive note at 8,711 levels. It subsequently hit an intra-day high at 8,727, turned volatile, and entered the negative zone.
Following the RBI monetary policy review, the contract again entered the positive zone. However, the central bank’s announcement to keep policy rates unchanged triggered selling pressure on the contract. The Nifty futures then tumbled sharply, declining more than 50 points to breach key support at 8,660 levels.
Traders with a short-term perspective can make use of rallies to initiate short positions while maintaining a stop-loss at 8,660 levels.
A strong fall below the immediate support around 8,625 can pull the contract down to 8,600 levels. The next significant supports are placed at 8,574 and 8,550 levels.
Nevertheless, a strong rally above 8,675 can negate the bearish outlook and take the contract higher to 8,700 and then to 8,727 levels. Subsequent resistance is at 8,750 levels. In that case, traders should exit the short position and stay on the sidelines.
Strategy: Sell the contract on rallies with stop-loss placed at 8,660 levels.
Supports: 8,625 and 8,600
Resistances: 8,675 and 8,700