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Taking mixed cues from the Asian markets, the Sensex and the Nifty started the session marginally in negative note and entered the positive territory. However, after experiencing selling interest at higher levels, the key benchmark indices have started to decline and are likely to enter the negative territory. The market breadth of the Nifty index is slightly biased towards advances. The India VIX which measures the volatility in the near-term has gained 12.5 per cent to 28.86 levels. The Nifty Mid-cap index has slumped 0.6 per cent due to selling pressure.
The Nifty futures contract started the session on a positive note, opening at 11,740 levels. After an initial decline, to the intra-day low of 11,710, the contract bounced up and rallied to the high of 11,784. A key support at 11,725 is providing base for the contract. A strong fall below this support can drag the contract down to 11,700 and then to 11,675 levels. Next key support is at 11,650.
The contract could encounter resistance at 11,760 and then at 11,780. A strong rally above these levels can take the contract higher to 11,800 and 11,825 levels.
Strategy: Go short only on a decisive fall below 11,725 levels with a fixed stop-loss.
Supports: 11,725 and 11,700
Resistances: 11,760 and 11,780
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