Nifty Call: Wait for dips and go long at 10,905 and 10,890

Nifty 50 July Futures (10,915)

The Nifty 50 futures opened with a gap-up for the second consecutive day. The contract opened at 10,886 and has reversed sharply higher after making an intraday low of 10,881.5. It has surged to a high of 10,922 and is hovering around the day’s high. The outlook is bullish and the contract is gaining momentum.

Immediate resistance is at 10,935. Inability to breach this hurdle in the first attempt can trigger an intermediate pull-back move to 10,900 or 10,880. The region between 10,880 and 10,875 is a strong support for the contract. A fall below 10,875 looks unlikely at the moment. Also, intermediate dips to 10,900 or lower levels is likely to attract fresh buying interest.

An eventual break above 10,935 will take the index futures higher to 10,950 initially. Further break above 10,950 will then pave way for the next target of 11,000.

Short-term traders can make use of dips to go long at 10,905 and at 10,890. Stop-loss can be placed at 10,870 for the target of 10,965. Revise the stop-loss higher to 10,915 as soon as the contract moves up to 10,925.

Strategy:  Wait for dips and go long at 10,905 and 10,890 with a stop-loss at 10,870

Supports: 10,900, 10,875

Resistances: 10,935, 10,950

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