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Nifty 50 August Futures (11,444)
The Nifty 50 futures contract has been consolidating over the last couple of days. The contract made an intra-day low of 11,398 and has reversed sharply higher from there. It is currently trading around 11,445.
The price action over the last couple of days on the chart suggests that the contract is lacking strong selling interest to drag it decisively below 11,400. This leaves the bias bullish.
Immediate support is at 11,430 and the next significant supports are at 11,400 and 11,380. As long as the contract trades above 11,430, a rally to 11,485 is likely in the coming sessions. A break above 11,485 will then pave way for the next targets of 11,500 or even 11,550 levels.
Short-term traders can go long on dips at 11,435. Stop-loss can be placed at 11,405 for the target of 11,485. Revise the stop-loss higher to 11,450 as soon as the contract moves up to 11,465.
The outlook will turn negative only if the contract breaks below the 11,375-11,380 support region. Such a break can drag the index futures lower to 11,350 and 11,330. However, such a strong break and fall below 11,375 looks less probable at the moment.
Strategy: Go long on dips at 11,435 with a stop-loss at 11,405
Supports: 11,430 and 11,400
Resistances: 11,485 and 11,500
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