Nifty call: Traders can go short

Nifty May Futures (8,300)

The Nifty futures contract is not getting a strong follow through buying. Although the contract opened with a gap-up at 8,283 and rose to a high of 8,328, it has failed to sustain higher. The immediate reversal from the intraday high suggests that the contract is attracting fresh sellers at higher levels. Technically, the resistance at 8,330 is continuing to hold very well. A fall to test the supports at 8,275 and 8,250 looks likely today.

Traders can go short. Stop-loss can be kept at 8,335 for the target of 8,260.

The downside pressure will ease slightly if the contract breaks above 8,330. The next target will be 8,350. Only a strong break above 8,350 will turn the short-term outlook positive for the contract.

Strategy: Go short with a stop-loss at 8,335

Supports: 8,275, 8,250

Resistances: 8,330, 8,350