Nifty call: Make use of rallies to initiate fresh short position

Nifty September Futures (7,846)

The Nifty futures started the session on a negative note at 7,869 levels and immediately entered the positive zone to mark an intra-day high at 7,887.

However, the contract failed to carry forwards its bullish momentum. Profit-taking and muted Asian markets have also pulled the contract down. It has decisively breached a key support at 7,850 and is halting at 7,830 levels, the day's low. The contract is experiencing selling pressure at higher levels.

Traders with a short-term perspective can make use of corrective upmoves to initiate fresh short position while maintaining a stop-loss at 8,775 levels.

Resumption of the downtrend can make the index test the immediate support at 7,830 and a break from this level can pull the contract further down to 7,800 levels.

On the other hand, a strong rally above 7,880 can take the contract higher to the resistance at 7,900. Next resistances are at 7,926 and 7,950 levels.

Strategy: Make use of rallies to initiate fresh short position while maintaining a stop-loss at 7,875.

Supports: 7,830 and 7,800

Resistances: 7,880 and 7,900