Nifty Call: Go long positive on a move beyond 10,710 level

Nifty 50 May Futures (10,698)

Taking bearish cues from the global markets, domestic bellwether indices started the session on a negative note.

The Dow and S&P 500 indices had declined 0.7 per cent each in last session. Hang Seng index slipped 1.4 per cent to 30,317 levels today, while the Japanese markets were closed.

The Nifty futures contract began the session with a gap-down open at 10,720. After marking an intra-day high at 10,726, the contract continued to decline, breaching a key support at 10,700.

However, the contract found base at its intra-day low of 10,665 and has recovered marginally. The market breadth of the Nifty index is biased towards declines.

The contract faces a key resistance ahead at 10,710. A strong rally above this level can extend the corrective up move to 10,726 levels.

Further breach of this hurdle will pave way for an up move to 10,750 levels. But, inability to move beyond 10,710 can drag the contract down to 10,680 and 10,665 levels. Further fall below 10,665 can pull the contract down to 10,650 and 10,630 levels.

Key resistances beyond 10,750 are at 10770 and 10,785 levels.

Strategy : Go long positive on a move beyond 10,710 level with a stop-loss at 10,695 levels 

Supports : 10,680 and 10,665

Resistances : 10,710 and 10,726

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