Although the MCX-silver futures contract tumbled from the high of ₹44,790 per kg last month, it did not break below the psychological ₹40,000 support decisively. The contract made a low of ₹39,860 but has bounced back. As long as the contract trades above ₹40,000 there is no threat of a sharp fall. A near-term rise to test the resistance at ₹42,147 is possible. A decisive break of this hurdle will boost the bullish momentum and can take it higher to ₹42,500 initially. A further break above ₹42,500 will pave the way for the next targets of ₹44,000 and ₹44,500. High risk appetite medium-term investors can go long at current levels. Stop-loss can be placed at ₹39,650 for the target of ₹44,000. Accumulate longs on dips at ₹40,500. Revise the stop-loss higher to ₹41,750 as soon as the contract moves up to ₹42,500. The outlook will turn negative on a decisive decline below ₹40,000. The ensuing target on such a fall is ₹38,500.

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