Taking mixed cues from the Asian markets, the Sensex and the Nifty 50 started the session in negative territory and continued to trend downwards.
The Nikkei 225 index is marginally up by 0.11 per cent or 24 points to 23,626 while the Hang Seng index is down by 12 points to 24,637 in today's session. Both the Sensex and the Nifty 50 have slipped about 0.5 per cent each. The market breadth of the Nifty 50 index is biased towards declines.
The volatility index - India VIX has fallen 1 per cent to 20.5 levels. The Nifty mid- and small-cap indices are trading mixed, the mid-cap index has declined 0.5 per cent whereas the small-cap index hovering marginally in the positive territory. Interestingly, the Nifty NEXT 50 index is up by 0.2 per cent. Among the sectoral indices, the Nifty FMCG and Realty are trading marginally in the positive territory. The top losers are the Nifty Pharma and the Nifty PVT Bank which have declined one per cent each.
The Nifty 50 index futures of October month started the session with a gap-down open at 11,902. After recording an intra-day high at 11,915, the contract continued to trend downwards breaching a key support at 11,900. It has marked an intra-day low at 11,817. The near-term outlook will remain bearish as long as the contract trades below 11,900 levels. Traders can make use of intra-day rallies to go short with a fixed stop-loss at 11,905. A decisive fall below the immediate support level of 11,850 can pull the contract down to 11,820 and then to 11,800. A further decline below 11,800 can pull the contract down to 11,775 and then to 11,750 levels. Key resistances above 11,900 are placed at 11,920 and 11,945 levels.
Strategy: Go short on intra-day rallies with a fixed stop-loss at 11,905 levels
Supports: 11,850 and 11,820
Resistances: 11,900 and 11,920
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