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The Sensex and the Nifty began the session on a positive note. After an initial rally, the key benchmark indices started to witness profit-booking and selling pressure at higher levels and began the trend downwards thereafter. The market breadth of the Nifty index is biased towards declines. The India VIX has jumped 14.8 per cent to 27.18. Both the Nifty Mid and Small cap indices are also experiencing selling pressure at higher levels and have slumped 0.9 per cent and 0.77 per cent respectively.
The Nifty May month contract started the session on a positive note, opening at 11,885. Following an initial rally, the contract marked an intra-day high at 11,895 and began the decline due to profit-booking. The contract breached a key support at 11,825 and slipped below 11,800 levels. Traders can make use of intra-day rallies to go short while maintaining a stop-loss at 11,810 levels.
A decisive fall below 11,800 can drag the contract down to 11,775 and 11,750 levels. A further decline below 11,750 can pull the contract lower to 11,725 and 11,700 levels. On the other hand, a strong rally above 11,850 can take the contract higher to 11,875 and 11,895 levels.
Strategy: Sell in intra-day rallies with a fixed stop-loss at 11,810 levels
Supports: 11,775 and 11,750
Resistances: 11,800 and 11,825
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