Nifty 50 May Futures (10,561)
The Nifty 50 futures contract surged breaking above the key resistance level of 10,510. The contract made a high of 10,587 and has come-off slightly from there.
Support for the contract is at 10,545 which is likely to limit the downside. A strong break above 10,585 can take the contract higher to 10,610 initially. Further break above 10,615 will see the upmove extending to 10,640 or even 10,680 thereafter.
Traders with high risk appetite can go long at current levels. Stop-loss can be placed at 10,535 for the target of 10,610. Revise the stop-loss higher to 10,570 as soon as the contract moves up to 10,580.
The bullish outlook will get negated if the index futures declines below 10,545. Such a break can take it lower to 10,530 and 10,500 thereafter.
Strategy : Go long with a stop-loss at 10,535
Supports: 10,545, 10,530
Resistances : 10,585, 10,615
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