Nifty 50 Jan Futures (10,515)
The Nifty 50 futures contract continues to trade on a positive note. Though the contract has come-off from the day's high of 10,543, the pull-back move lacks strength. This indicates lack of selling interest in the market. It also increases the possibility of finding fresh buyers at lower levels.
Immediate support is at 10,510. Next key support is at 10,490 which is likely to limit the downside during the day if the contract declines below 10,510. An upward reversal from the current levels or from 10,490 can take the contract higher to 10,560. A strong break above 10,560 will pave way for a further rally to 10,600.
Short-term traders can go long at current levels and also accumulate on dips at 10,500. Keep the stop-loss at 10,485 for the target of 10,560. Revise the stop-loss higher to 10,525 as soon as the contract moves up to 10,535. The near-term view will turn negative only if the index futures breaks below 10,490. The next targets are 10,475 and 10,450.
Strategy : Go long at current levels and accumulate on dips with a stop-loss at 10,485
Supports: 10,510, 10,490
Resistances: 10,560, 10,600