Nifty 50 October Futures (10,033)
Taking positive cues from Asian markets, domestic benchmark indices - the Nifty and Sensex started the session in the green with a gap-up open.
The Nikkei 225 added 132 points or 0.6 per cent to move to 20,823 and Hang Seng index gained 159 points or 0.6 per cent to 28,485 levels.
The Nifty October futures contract started the session with a minor gap-up open at 10,029 levels. After marking an intra-day low of 10,015, the contract began to move higher.
However, the contract faces a key resistance at 10,050 levels; it recorded an intra-day high of 10,047.9. The contract faces difficulty in surpassing the key resistance level of 10,050 level.
The advances/declines ratio is biased towards advances. The contract can remain range-bound between 10,015 and 10,050 levels.
Traders with a short-term view should tread with caution as long as the contract moves sideways in this range. Fresh long positions should be considered on a strong rally beyond 10,050 levels with a fixed stop-loss.
In that scenario, the contract can test next resistances at 10,075 and 10,100 levels. On the other hand, if the contract slips below 10,015, it can test support at 10,000. A strong plunge below 10,000 is required to bring in selling pressure and pull the contract down to 9,975 and 9,950 levels.
Strategy : Consider initiating fresh long positions on a strong move beyond 10,050 levels with a fixed stop-loss.
Supports : 10,015 and 10,000
Resistances : 10,050 and 10,075