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Nifty 50 January futures (10,931)
The Nifty 50 futures contract has gained momentum. The contract opened with a wide 30-point gap-up at 10,899.9 and surged to an intra-day high of 10,955. It has, however, come off this high and is currently trading at 10,931.
A cluster of supports is poised between 10,920 and 10,900, which are likely to limit the downside. A bounce from this support zone can take the contract higher to the next resistance level of 10,965. An eventual break above 10,965 will then increase the likelihood of the contract extending its upmove towards 11,000 in the coming session.
Short-term traders can make use of dips to go long at 10,922 and 10,913. Stop-loss can be placed at 10,890 for the target of 10,975. Revise the stop-loss higher to 10,935 as soon as the contract breaks above 10,945.
The index futures will come under pressure only if it breaks below 10,900. Such a break can take it initially down to 10,875. A further break below 10,875 can then drag the contract lower to 10,850 or even 10,820.
Strategy: Go long on dips at 10,922 and 10,913, with a stop-loss at 10,890
Supports: 10,900, 10,875
Resistances: 10,965, 11,000
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