Nifty 50 July futures (9,998) Taking positive cues from the global markets, the Nifty futures started the session in the green at 9,975. The Dow Jones Industrial Average index advanced 0.47 per cent to close at 21,613 on Wednesday.
In the Asia-Pacific, the Nikkei 225 index is trading up 0.5 per cent at 20,050 and the Hang Seng index is marginally up by 0.2 per cent at 26,891 levels.
After an initial decline to an intra-day low of 9,964, the Nifty futures contract began to move higher on the back of short-covering and buying interest. The contract breached an immediate resistance at 9,995 and has marked an intra-day high of 10,009 as of now. The near-term outlook will remain bullish as long as the contract trades above the key support level of 9,975 levels.
Traders can hold their long positions with a stop-loss at 9,975 levels. The contract can test resistances at 10,020 and 10,040.
The underlying Nifty is also witnessing buying interest and is up 0.4 per cent. The advances/ declines ratio is biased towards advances. Traders with a near-term view can go long on dips with a tight stop-loss at 9,975 levels. Desist from taking fresh long positions if the contract declines below 9,975 levels. The next key supports below 9,975 are at 9,950 and 9,930.
Strategy: Go long on dips with a tight stop-loss at 9,975
Supports: 9,975 and 9,950
Resistances: 10,020 and 10,040