Nifty Call: Go long at current levels with a stop-loss at 10,405

Nifty 50 October Futures (10,440)

 

The Nifty 50 futures contract has got a breather today. The contract opened with a 20-point gap-up at 10,333 and surged to a high of 10,469. The contract has come-off slightly from the day’s high and is currently trading at 10,442. Support is in the 10,420-10,410 region. As long as the contract sustains above this support zone, a corrective rally to 10,550 or even 10,600 is possible in the coming sessions.

Short-term trader can go long at current levels and also accumulate on dips at 10,425. Stop-loss can be placed at 10,405 for the target of 10,520. Revise the stop-loss higher to 10,460 as soon as the contract moves up to 10,475.

However, the broader downtrend remains intact and the current bounce back move could be short lived. So, the price action around 10,550 and 10,600 will need a close watch. A downward reversal from this resistance region will see the downtrend resuming thereafter.

Strategy: Go long at current levels and also on dips at 10,425 with a stop-loss at 10,405

Supports: 10,410 and 10,370

Resistances: 11,525 and 11,550

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