Nifty February Futures (8,650)
The Nifty futures contract continues its positive trend. The contract opened with a gap up at 8,655.15 and went on to record a high of 8,674.8. Reversing lower from this level, the contract found support at 8,610.75 and is now bouncing back.
The outlook is bullish. Immediate support is at 8,640 and subsequent intra-day support is at 8,615. Resistance is at 8,665. A strong break above this level can take the index higher to 8,700 during the day.
Traders can go long at current levels. Stop-loss can be placed at 8,620 for the target of 8,690.
The outlook for the Nifty futures contract will turn negative only if it breaks below 8,600. But such a break looks unlikely in the near term.
Strategy : Go long with a stop-loss at 8,620
Supports : 8,640, 8,615
Resistances : 8,665, 8,700