Nifty 50 January futures (11,069) The Nifty and Sensex started the session with a gap-up open, taking cues from the positive global markets. The indices continued to trend upwards and record new highs. The market breadth of the Nifty index is biased towards advances.

The Nifty futures contract also began the session with an upward gap, opening at 10,988 levels, which is also the intra-day low. The contract extended its up-move and registered an intra-day high at 11,088. However, the contract started to experience a corrective fall on profit-taking and minor selling pressure. The contract is trading at a discount to the underlying Nifty index. Overall, the uptrend is intact, but any selling pressure and profit-booking can trigger a sell-off. Therefore, traders with a near-term perspective should tread with caution and con hold long positions with stop-loss at 11,050.

The contract can re-test resistance at 11,088 and a further rally can take it above 11,100 levels. Nevertheless, if the contract slumps below 11,050, the corrective decline can extend and test support at 11,025 and 11,000 levels. Subsequent supports are placed at 10,970 and 10,950 levels.

Strategy: Hold your longs with a fixed stop-loss at 11,050

Supports: 11,050 and 11,025

Resistances: 11,088 and 11,110

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