The Nifty 50 index opened on a flat note on Wednesday, but has been inching up since the beginning of the session. The index has gained 0.4 per cent today and is comfortably trading above the important level of 11,000 indicating a positive bias. The Sensex too gained 0.4 per cent today. Except for the Chinese indices, Asian markets are trading in the green which may lend a positive bias to Indian benchmarks.
Market breadth indicates bullishness as Advance-Decline ratio stands at 37-13; volatility has declined too with India VIX at 15.54 levels, down by 1.95 per cent. All the sectoral indices are in the green, except for the Nifty IT index which is trading 1.2 per cent lower against its previous close. Top gainers are Nifty Realty index with 3.1 per cent gain, Nifty Auto index and Nifty PSU bank index with over 2.5 per cent gain each in today’s session.
The September futures contract of the Nifty began the day on a flat note at 11,026. The contract has managed to trade above this level, indicating buying interest. However, it faces an immediate resistance at 11,100 levels. Hence, traders can buy once the contract breaks above 11,100 with stop loss at 11,040 and target of 11,160.
Strategy: Buy above 11,100 with stop loss at 11,040.
Supports: 11,040 and 11,000
Resistances: 11,100 and 11,160