Nifty 50 May Futures (9,400)
The Nifty 50 futures contract is trading on a strong note. The contract is up about 0.5 per cent and is testing the psychological 9,400 mark. There is a key intraday resistance near 9,415 which is currently capping the upside.
The contract made an intraday high of 9.412 and has come-off slightly from there. A pull back move to 9,375 is possible.
If the contract manages to bounce back from 9,375 it can rise to 9,400 and 9,415 once again. An eventual break above 9,415 can take the contract higher to the next target of 9,445.
Traders with a short-term perspective can wait for dips and go long near 9,375. Stop-loss can be placed at 9,355 for the target of 9,410.
A break below 9,375 though less probable can take the index futures lower to 9,360 or 9,350 during the day. Key support is at 9,340 and the outlook will turn negative only if the contract declines below this level. Such a fall will increase the likelihood of the contract revisiting 9,300 levels.
Strategy : Wait for dips and go long near 9,375 with a stop-loss at 9,355
Supports : 9,375, 9,340
Resistances : 9,415, 9,445
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