Nifty 50 January Futures (10,975)
The Nifty 50 futures contract has begun the week on a strong note. The contract opened at 10,930 and surged to make an intra-day high of 11,003. The contract has come-off from this high and is currently trading at 10,975. The decisive break above 10,950 has turned the short-term outlook positive.
The broad region between 10,960 and 10,940 will now act as strong support for the contract and is likely to limit the downside. Intermediate dips to this support zone are likely to find fresh buyers coming into the market. An eventual break above 11,000 will see the contract rallying towards 11,100 in the coming sessions.
Traders can buy on dips at 10,965 and 10,955. Stop-loss can be placed at 10,930 for the target of 11,045. Revise the stop-loss higher to 10,980 as soon as the contract moves up to 10,995.
The bullish outlook will get negated only if the index futures declines below 10,940. The next targets are 10,900 and 10,875. But such a strong fall below 10,940 looks less probable at the moment.
Strategy: Go long on dips at 10,965 and 10,955 with a stop-loss at 10,930
Supports: 10,940, 10,900
Resistances: 11,000, 11,100