The Nifty Call: Go long on a break above 7,920

Nifty November Futures 7,910

The Nifty futures contract is continuing to trade on a strong note. The contract surged from its intraday low of 7,822 breaking above 7,900. However, it is facing resistance at 7,920 now. Further rise is possible only if the contract breaks above this resistance. Such a break can take the contract higher to 7,950 and 7,985.

Traders with a short-term perspective can go long on a break above 7,920. Stop-loss can be kept at 7,905 for the target of 7,950.

Inability to break above the immediate resistance at 7,920 can see an intermediate dip to 7,870 during the day. This level of 7,870 is a strong intraday support. The contract is likely to sustain above this support and reverse higher once again.

Break below 7,870 will increase the downside pressure and drag the contract lower to 7,850 and 7,820.

Strategy: Go long on a break above 7,920

Supports: 7,870, 7,850

Resistances: 7,920, 7,950

Nifty November Futures (7,910)