The silver futures contract on the MCX surged 5.6 per cent lastmonth to record a high of ₹44,151. But the contract slumped over 3 per cent in the last two trading days in the past week wiping out most of the gains made earlier. Immediate resistance is at around ₹43,000. Inability to breach above this hurdle may keep the contract under pressure. In such a scenario, a fall to ₹42,000 or ₹41,900 is possible in the near term. A reversal from the ₹42,000-₹41,900 support zone can keep the silver futures range-bound between ₹42,000 and ₹43,500 for some time. A breakout on either side of ₹42,000 or ₹43,500 will then decide the next trend for the contract. The bias is bullish on the charts. As such, the contract is likely to sustain above ₹42,000 and break above ₹43,500 eventually. Such a break can take the contract higher to ₹44,500 or ₹45,000 thereafter. Traders with a medium-term perspective can buy on dips near ₹42,000. Stop-loss can be placed at ₹41,250 for the target of ₹43,500. Revise the stop-loss higher to ₹41,700 as soon as the contract moves up to ₹42,850.

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