The Nifty call: Go long with stop-loss at 10,690

Nifty 50 November Futures (10,710)

The Nifty 50 futures contract opened with a gap-down at 10,749 and fell to an intraday low of 10,707. However, the down move seems to be lacking strength. Also, the contract continuing to hover above the psychological 10,700 level ; this indicates that the index futures is not getting strong sellers to drag it below that level.

This keeps the bias positive. A bounce-back from current levels can take the contract higher to the near-term resistance level of 10,740. A strong break above 10,740 will then increase the likelihood of the contract targeting 10,770 and 10,800 thereafter.

The bullish outlook will get negated if the index futures decline below 10,700 decisively. In such a scenario, a fall to 10,670 and 10,650 is possible.

Traders with high risk appetite can go long at current levels. Stop-loss can be placed at 10,690 for the target of 10,760. Revise the stop-loss higher to 10,725 as soon as the contract moves up to 10,735.

Strategy: Go long with a stop-loss at 10,690

Supports: 10,700, 10,670

Resistances: 10,740, 10,770

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