Nifty Call: Go long with a stop-loss at 10,775

Nifty 50 June Futures (10,800)

The Nifty 50 futures contract has begun the week on a positive note. The contract opened with a gap-up at 10,768 and surged to an intraday high of 10,819.

It has subsequently come-off from this high and is hovering around the psychological level of 10,800. An immediate support is at 10,780, which is likely to limit the downside and keep the bullish outlook intact.

Resistance is at 10,820. A break above it can take the contract higher to 10,840 or 10,850. A strong trend-line resistance is poised around 10,850, which may halt the current rally in the index futures. A pull-back from this resistance can drag the Nifty 50 futures contract lower in the coming days.

Short-term traders can go long at current levels. Stop-loss can be placed at 10,775 for a target of 10,845. Revise the stop-loss higher to 10,815 as soon as the contract moves up to 10,825.

Strategy:  Go long with a stop-loss at 10,775

Supports: 10,780, 10,750

Resistances: 10,820, 10,850

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