Taking positive cues from the global markets, the Sensex and the Nifty 50 began the session with a gap-up open and continued to trend upwards. The Dow Jones and S&P 500 had gained 2 per cent and 1.3 per cent respectively, in the past session. The Asian markets started the session on a mixed note, with the Nikkei 225 jumping 1.6 per cent to 22,945, and the Hang Seng index falling by a marginal 0.3 per cent to 25,408 in today’s session. Both the Sensex and the Nifty 50 indices have advanced 1.7 per cent each so far. The market breadth of the Nifty 50 index is biased towards advances. On the other hand, the India VIX has slumped 2.5 per cent to 25.9. The Nifty mid- and small-cap indices have rallied 0.3 per cent and 1.2 per cent respectively. The only sectoral index that is trading in the red is Nifty realty that has fallen 1 per cent. The Nifty IT index has surged 5.5 per cent, backed by a strong rally in top IT stocks Wipro, Infosys and HCL Technology.

The July month contract commenced the session with a gap-up open at 10,682. After marking an intra-day low at 10,662 the contract continued to trend upwards, breaching a key resistance at 10,700. It marked an intra-day high at 10,823 and started to move sideways. Traders can make use of intra-day dips to buy the contract, while maintaining stop-loss at 10,700. A strong rally above 10,800 can take the contract higher to 10,825 and then to 10,850. Next resistances are at 10,870 and 10,900. On the downside, key supports are at 10,680 and 10,650.

Strategy: Buy on declines while maintaining stop-loss at 10,700

Supports: 10,700 and 10,680

Resistances: 10,800 and 10,825