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The Nifty 50 futures contract has bounced back after making a low of 10,293 on Monday. The contract made a high of 10,425 and has come-off from there today. Inability to pull the contract sharply below 10,400 indicates lack of fresh selling interest in the market. This leaves the possibility high for the contract to see a relief rally in the coming sessions. Resistance is between 10,410 and 10,420. A strong break above 10,420 can trigger an upmove towards 10,480 or even 10,500. Whether the contract manages to rise past 10,500 or not will be key in determining the next move.
Short-term traders with high risk appetite can go long on a break above 10,420. Stop-loss can be placed at 10,390 for the target of 10,480. Revise the stop-loss higher to 10,430 as soon as the contract moves up to 10,445.
The contract will come under pressure if it declines below 10,350. Such a break will drag it to 10,300 levels again.
Strategy: Go long on a break above 10,420 with a stop-loss at 10,390
S upports: 10,350, 10,300
Resistances: 10,420, 10,480
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