Nifty call: Go long with a stop-loss at 10,035

Nifty 50 Sept Futures (10,061)

Nifty 50 futures contract is gaining momentum. The contract opened with a 30 points gap-up. Price action on the intraday chart suggests that the contract is getting a strong buying interest on dips below 10,050.

The outlook is bullish. Immediate resistance is at 10,070 which is likely to be broken. Such a break will pave way for the next target of 10,120 or may be even higher.

Traders can go long. Stop-loss can be placed at 10,035 for the target of 10,110. Revise the stop-loss higher to 10,070 as soon as the contract moves to 10,095.

The outlook will turn negative only if the index futures declines below 10,035 decisively. The ensuing targets are 10,020 and 9,990. But such a sharp fall looks less probable at the moment.

Strategy: Go long with a stop-loss at 10,035.

Supports: 10,035, 9,990

Resistances: 10,070, 10,120

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