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Nifty 50 May Futures (10,575)
The Nifty 50 futures contract opened with a wide gap-down. However, the contract is getting support in the 10,550-10,540 region. It made a low of 10,540 and has reversed higher, thereby, easing the downside pressure slightly. The immediate outlook is positive.
The current bounce-back can extend to test the next resistance level of 10,610. If the index futures manages to breach this hurdle, the relief rally can extend to 10,635 or even 10,660. But a pull-back move from 10,610 can take the contract lower to 10,570 or 10,550 again.
Short-term traders with a high risk appetite can go long at current levels. Stop-loss can be placed at 10,560 for the target of 10,605. Revise the stop-loss higher to 10,580 as soon as the contract moves up to 10,595.
The contract will come under pressure again if it declines below 10,540. Such a break can drag it to 10,500 and 10,480 thereafter.
Strategy: Go long with a stop-loss at 10,560
Supports: 10,570, 10,540
Resistances: 10,610, 10,635
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