Nifty call: Go long only if the contract rallies above 10,030 levels

Nifty 50 October Futures (10,010)

The Nifty futures contract started the session marginally in a negative note at 9,991 levels. After marking an intra-day low of 9,983.6, the contract began to trend upwards, witnessing buying interest.

The contract rallied beyond 10,000-mark. However, it encountered a key resistance at around 10,030 by marking an intra-day high of 10,033 levels and turned volatile.

Asian markets are showing a mixed trend. The market breadth of Nifty 50 index is biased towards advances. The Nifty futures contract can move sideways in a narrow range between 9,990 and 10,030.

Traders with a near-term perspective can stay on sidelines as long as the contract moves sideways in this range. Fresh long positions can be considered only if the contract moves beyond 10,030 levels with a fixed stop-loss.

In that case, the contract can trend upwards to 10,050 or even to 10,075 levels in the short term. Key supports below 9,990 are placed at 9,975 and 9,950 levels.

Strategy: Go long only if the contract rallies above 10,030 levels with a fixed stop-loss.

Supports: 9,990 and 9,975

Resistances: 10,030 and 10,050

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