Nifty call: Go long in dips with a fixed stop-loss at 10,050 levels

Nifty 50 October Futures (10,072)

The Nifty October futures contract started the session on a positive note with a gap-up open at 10,052 levels, after taking bullish cues from the US markets that had ended in a positive territory.

The contract recorded an intra-day low of 10,048 and continued to trend upwards. It has marked an intra-day high of 10,084.

Both the Nifty and Sensex are on the climb, witnessing buying interest. The market breadth of the Nifty index is biased towards advances. The contract has breached a key resistance at 10,050 levels.

Traders with a short-term perspective can consider buying the contract in dips while maintaining a fixed stop-loss at 10,050 levels. The contract can re-test the intra-day high of 10,084.

Further rally beyond this level can take it higher to 10,100 levels. Conclusive break above 10,100 can push the contract northwards to 10,125 and 10150 levels. Conversely, if the contract slips below 10,050, it can find support at 10,030 and in the band of 10,000-10,010 in the near term.

Strategy: Go long in dips with a fixed stop-loss at 10,050 levels.

Supports: 10,050 and 10,030

Resistances: 10,084 and 10,100

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