The Nifty call: Go long with a stop-loss at 8,440

Nifty August Futures (8,460)

The Nifty futures contract has begun the week on a volatile note. The contract opened at 8,529 and then fell sharply after recording an intraday high of 8,540 to a low of 8,411. The contract has reversed higher again from this low and is currently trading at 8,460. Immediate support is at 8,445. As long as it trades above this support a rise to 8,490 and 8,520 is possible during the day.

Traders can go long with a stop-loss at 8,440 for the target of 8,500.

The contract will come under pressure once again if it falls below 8,445. Such a fall can drag it to 8,400. It will also increase the danger of the contract extending its fall to 8,380.

Strategy: Go long with a stop-loss at 8,440

Supports: 8,445, 8,400

Resistances: 8,490, 8,510