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Nifty 50 Jan Futures (10,722)
The Nifty 50 futures contract fell sharply and made a low of 10,665. However, it has managed to reverse higher immediately and is hovering at the day's high of 10,735. This strong bounce back move seems to lack strength.
Immediate resistance is at 10,735 which is holding well as of now. A strong break above this hurdle is needed for the contract to extend its upmove. Such a break can take it higher to 10,760 and 10,775.
Short-term traders with a high-risk appetite can go long on a break above 10,735. Stop-loss can be placed at 10,715 for the target of 10,770. Revise the stop-loss higher to 10,745 as soon as the contract moves up to 10,755.
On the other hand, if the contract remains below 10,735, the possibility of it falling again cannot be ruled out. In such a scenario, the index futures contract can break below 10,700 and fall to 10,650 levels again.
Strategy: Go long on a break above 10,735 with a stop-loss at 10,715.
Supports : 10,700, 10,660
Resistances : 10,735, 10,775
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