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Nifty 50 February Futures (10,618) Bullish global markets helped the Nifty and Sensex start the session with a gap-up opening. The Dow and S&P 500 index gained 1 and 1.3 per cent respectively in the last session. In Asia, the Nikkei 225 gained 1.4 per cent to 21,464 and the Hang Seng index added almost 2 per cent to 31,115 levels, tracking the positive US markets.
Similarly, the Nifty and Sensex continue to trend upwards and have advanced more than 1 per cent in today's session, backed by a rally in the large-cap stocks. The Nifty February contract started the session with a gap-up open at 10,534, breaching a key resistance at 10,500. After marking an intra-day low at 10,513, the contract continued to move higher. The market breadth of the Nifty index is biased towards advances. The contract breached its next key resistance at 10,600 and has recorded an intra-day high at 10,630.
Traders can make use of intra-day dips to buy the contract, while maintaining a fixed stop-loss at 10,560. A strong rally above 10,630 can test resistances at 10,650 and 10,675 levels. The next significant resistance is at placed at 10,700. On the other hand, key supports below 10,600 are at 10,575 and 10,550. Only a strong decline below 10,530 will bring back selling pressure and drag the contract down to 10,500 or even lower.
Strategy: Make use of dips to buy with a stop-loss at 10,560 levels
Supports: 10,600 and 10,550
Resistances: 10,630 and 10650
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