Nifty 50 October Futures (11,219)

Both the Sensex and the Nifty 50 indices began the session with a gap-up open amid mixed Asian markets. The Nikkei 225 is up 0.12 per cent, almost hovering flat at 23,539 while the Hang Seng index has slipped 0.6 per cent to 23,334 levels in today's session.

Following a positive start, the Sensex and the Nifty 50 indices have started to trend downwards, witnessing selling interest at higher levels. Both the indices have declined about 0.25 per cent each. The market breadth of the Nifty 50 index is biased towards declines.

The India VIX -volatility index is marginally up by 0.4 per cent to 19.6 levels. The Nifty mid and small-cap indices have fallen 0.7 per cent and 0.2 per cent, respectively. The Nifty IT and metal sectoral indices have gained 0.77 per cent and 0.6 per cent, respectively. On the other hand, the top sectoral losers are Nifty PSU Bank and PVT Bank indices that have declined 2.9 per cent and 1.7 per cent, respectively.

Watch: Smart Investor webinar on ‘Asset Allocation in Volatile Market’

The Nifty 50 October month contract commenced the session with a gap-up open at 11,272. After marking an intra-day high at 11,298 the contract started to decline breaching a key support at 11,250 and recorded an intra-date low at 11,192 levels.

The contract has declined 0.4 per cent so far. The near-term stance is becoming weak. Outlook will remain bearish as long as the contract trades below 11,250 levels. Traders can make use of intra-day rallies to initiate fresh short positions with a stop-loss at 11,255 levels.

A decisive fall below the immediate support level of 11,200 can pull the contract down to 11,175; 11,150 and then to 11,220 levels. Key resistances above 11,250 are placed at 11,275 and 11,300 levels.

Strategy: Sell on rallies with a stop-loss at 11,260 levels

Supports: 11,200 and 11,175

Resistances: 11,230 and 11,250

comment COMMENT NOW