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Nifty 50 July Futures (9,867)
The Nifty 50 futures contract opened with a wide 50 points gap-up today. However, the contract failed to extend the momentum and is stuck in a narrow range between 9,859 and 9,879.
The immediate outlook is not clear. Inability to break above 9,880 can take the contract lower to 9,850. This level of 9,850 is a good near-term support. A break below it is less probable as such dips may find fresh buyers coming into the market.
As such, a reversal from 9,850 can take the index futures higher to 9,880 once gain. An eventual break above 9,880 will see the upmove extending to 9,900 or even higher.
Traders can wait on the sidelines at the moment. Make use of dips to go long near 9,850 with a tight stop-loss at 9,835 for the target of 9,880. Revise the stop-loss higher to 9,860 as soon as the contract moves up to 9,870.
The upmove to 9,900 will get negated if the contract declines below 9,850. Such a break can take the contract lower to 9,830 or even 9,800 thereafter.
Strategy : Go long on dips near 9,850 with a stop-loss at 9,835
Supports : 9,850, 9,830
Resistances: 9,880, 9,900
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