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Nifty 50 November Futures (10,660)
Nifty 50 futures contract seems to be lacking momentum to take it decisively higher. The contract briefly breached 10,700 but failed to sustain the break. It made an intraday high of 11,709 and has come-off sharply from there. This indicates lack of strong follow-through buying to take it decisively above the psychological level of 10,700.
A key intraday support is in the 10,630-10,620 region which is likely to be tested during the day. A bounce from this support zone will take the contract higher to 10,680 and 10,700 levels again.
Short-term traders can wait for dips and go long if the contract reverses higher from the 10,630-10,620 support zone. Stop-loss can be placed at 10,605 for the target of 10,675. Revise the stop-loss higher to 10,645 as soon as the contract moves up to 10,655.
But a strong break below 10,620 will see the downmove extending towards 10,600 and 10,580. The level of 10,580 is a key near-term support. A strong break below it can drag the index futures lower to 10,550 and 10,520 going forward.
Strategy: Go long on a bounce from 10,630-10,620 support zone with a stop-loss at 10,605
Supports: 10,620, 10,600
Resistances: 10,680, 10,710
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