The Nifty call: Go long with a stop-loss at 7,825

Nifty August Futures (7,860)

The Indian benchmark indices continue to trade volatile. The Nifty futures contract opened with a gap down and recorded a low of 7,793.35. Though the contract reversed higher from this low, it has failed to breach the key 7,900-7,930 resistance zone. The contract has reversed lower once again after recording a high of 7,939. Support is at 7,830. Also there is an inverted head and shoulder pattern visible on the intraday chart which suggests that the support at 7,830 could limit the downside for the day.

Short-term traders with high risk appetite can go long. Stop-loss can be kept at 7,825 for the target of 7,910.

If the contract manages to surpass the hurdle at 7,930 today, then it can rise further to 7,960 and 7,985.

Strategy: Go long with a stop-loss at 7,825

Supports: 7,830, 7,790

Resistances: 7,900, 7,930