Nifty 50 April Futures (10,397)

The Nifty 50 futures contract appears to lack momentum. The contract opened with a wide 30-point gap-up at 10,424, but failed to sustain higher.

It made a high of 10,439 and has come-off from there. It is currently hovering around the psychological support level of 10,400.

The price action suggests that the contract lacks strong selling interest to drag it below 10,400. Key support is at 10,380 which is likely to limit the downside. A rally to 10,450 is possible in the coming sessions.

Traders can go long. Stop-loss can be placed at 10,370 for the target of 10,445. Revise the stop-loss higher to 10,415 as soon as the contract moves up to 10,425.

The contract will come under pressure only if it declines below 10,370 decisively.  Such a break can drag the contract lower to 10,350 or 10,330 thereafter.

Strategy: Go long with a stop-loss at 10,370

Supports : 10,380, 10,350

Resistances : 10,450, 10,485

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