Nifty Call: Go long with a stop-loss at 10,575

Nifty 50 June Futures (10,605)

The Nifty 50 futures contract has reversed sharply higher from the day's low of 10,561. A key trend line support around 10,570 has halted the downtrend that has been in place over the last few days and has triggered an upward reversal.

The contract made a high of 10,630 and has come-off slightly from there. However, intermediate support is at 10,585 which may limit the downside during the day. As long as the contract stays above this support, the outlook will remain positive.

Resistances are at 10,630 and 10,650. A strong break above these resistances will increase the likelihood of the contract rallying towards 10,680 and 10,700.

Short-term traders with high risk appetite can go long at current levels. Stop-loss can be placed at 10,575 for the target of 10,670. Revise the stop-loss higher to 10,625 as soon as the contract moves up to 10,630.

Strategy :  Go long with a stop-loss at 10,575

Supports: 10,585, 10,565

Resistances : 10,630, 10,650

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