Nifty 50 September futures (9,983) The September month Nifty futures contract started the session on a positive note, opening at 9,945 levels, taking cues from the US markets. The Dow Jones Industrial Average climbed 55 points or 0.3 per cent to close at 21,948 and the S&P 500 index added 14 points or 0.6 per cent to close at 2,461 levels on Thursday.
The Asian markets started in positive territory and have turned mixed now. However, the Nifty and the Sensex are trading firm, gaining above 0.4 per cent each. The market breadth of the Nifty is biased towards advances.
The Nifty futures contract has surpassed the 21-day moving average and shows signs of bullish momentum. But the contract faces a key resistance at 10,000. It has marked an intra-day high of 9,999.
Traders with a short-term view can buy the contract on dips with a fixed stop-loss at 9,970 levels. The contract can continue its up-move and test resistance at 10,000. A strong rally above 10,000 can take it higher to 10,025 and 10,050 levels. On the other hand, a fall below the immediate key support levels of 9,950 can trigger selling pressure and drag the contract down to 9,930 and 9,900 levels in the short term. Avoid taking fresh long positions if the contract falls below 9,950 levels.
Strategy: Go long on declines with stop-loss at 9,970 levels
Supports: 9,975 and 9,950
Resistances: 10,000 and 10,025