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Nifty 50 June Futures (10,809)
The Nifty 50 futures contract has been finding strong support around 10,720 since Thursday. The contract opened with a gap-down and fell to a low of 10,718. However, it has reversed sharply higher from the lows and has risen past the psychological level of 10,800.
Key resistance is in the 10,820-10,830 region which is likely to be tested in the coming sessions. Whether the contract breaks above 10,830 or not will decide the next trend.
Inability to break above the 10,820-10,830 resistance zone can trigger a pull-back move to 10,800 or even 10,780. Further break below 10,780 can drag the contract to 10,750.
On the other hand, if the index futures manage to breach 10,830 decisively, it can gain momentum. Such a break will take the contract higher to 10,860 initially. Further break above 10,860 will then increase the likelihood of the contract targeting 10,900 over the short term.
Traders with high risk appetite can go short if the contract reverses lower from the 10,820-10,830 resistance zone. Stop-loss can be placed at 10,845 for the target of 10,790. Revise the stop-loss lower to 10,815 as soon as the contract moves down to 10,805.
Strategy: Go short if the contract reverses lower from the 10,820-10,830 resistance zone with a stop-loss at 10,845.
Supports: 10,780, 10,750
Resistances: 10,830, 10,860
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