Nifty 50 Dec Futures (10,312)
The Nifty 50 futures contract opened the week on a positive note. The contract opened with a 27-point gap-up.
Though it has come-off after making a high of 10,341, cluster of supports between 10,310 and 10,300 can limit the downside during the day. An upward reversal once again can take the contract higher to 10,350 and 10,370 in the coming sessions.
The level of 10,370 is a key resistance for the index futures. Whether the contract breaks above this hurdle or not will determine the direction of the move for the rest of the week.
Short-term traders with high risk appetite can go long at current levels. Stop-loss can be placed at 10,290 for the target of 10,350. Revise the stop-loss higher to 10,325 as soon as the contract moves up to 10,340.
The bullish outlook will get negated if the index futures breaks below 10,300 decisively. Such a break will increase the likelihood of the contract falling to 10,280 or even 10,250.
Strategy : Go long with a stop-loss at 10,290
Supports: 10,300, 10,280
Resistances : 10,350, 10,370