Nifty call: Go long on break above 10,355 with stop-loss at 10,335

Nifty 50 March Futures (10,328)

The Nifty 50 futures contract opened with a wide gap-up of 115-points. However, the contract is not receiving strong follow-through buying to keep the momentum going. The index futures is stuck in a narrow range between 10,295 and 10,345. Key support is in the 10,300-10,290 region and resistance is at 10,355. A strong breakout on either side of 10,290 or 10,355 will determine the next move. Until then the contract could remain range-bound between 10,290 and 10,355. Traders can stay out of the market at the moment and wait for the range breakout to initiate fresh trades.

A strong break above 10,355 can take the contract higher to 10,395 or 10,415. On the other hand, if the index futures breaks below 10,290, it can fall to 10,240 or even 10,200. Long positions can be initiated on a strong break above 10,355. Stop-loss can be placed at 10,335 for the target of 10,395. Revise the stop-loss higher to 10,370 as soon as the contract moves up to 10,385.

Strategy: Go long on break above 10,355 with stop-loss at 10,335

Supports: 10,290, 10,240

Resistances: 10,355, 10,395

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