The Nifty Call: Initiate short position if the contract reverses from 8,225

Nifty October Futures (8,196)

The Nifty futures started the session with an upward gap to open at 8,207, breaching the key resistance level of 8,200. However, the contract has failed to sustain above this level, despite marking an intra-day high at 8,248 levels. It has given away most of its intra-day gains and has slipped below the 8,200 levels.

The contract experiences selling pressure at higher levels. Therefore, traders should tread with caution and initiate fresh short position if the contract fails to move above 8,225, with a fixed stop-loss.

The contract can extend its decline and test the intra-day support at 8,180. Further fall below this level can pull the contract down to 8,150 and then to 8,130 levels. Conversely, a strong rally beyond 8,225 can strengthen the bullish momentum and take the contract higher to 8,250 and 8,275 levels.

Strategy: Initiate short position if the contract reverses from 8,225

Supports: 8,180 and 8,150

Resistances: 8,225 and 8,250