Nifty Call: Avoid trading as market is range-bound

Yoganand D | Updated on July 03, 2019 Published on July 03, 2019

Nifty 50 July Futures (11,951)

The benchmark indices the Sensex and the Nifty are range-bound following a negative start. The Asian markets are marginally down, the Nikkei 225 has slipped 0.5 per cent to 21,638 and Hang Seng index has declined 0.27 per cent to 28,797 levels. The market breath of the Nifty index is at breakeven level. The volatility index, India VIX has slumped 1.7 per cent to 14. The Nifty mid and small-cap indices have gained 0.3 per cent each.

The Nifty July month contract commenced the session in positive territory at 11,953. But it declined initially and marked an intra-day low at 11,927 after which it began to rally. The contract recorded an intra-day high at 11,960. It is in a sideways range between 11,930 and 11,960. Traders should tread with caution as long as the contract is range-bound. A strong rally above 11,960 can take the contract higher to 11,980 and 12,000 levels. Next key resistances are at 12,025 and 12,050 levels. On the other hand, an emphatic fall below 11,930 can drag the contract down to 11,900 and then to 11,875 levels.

Strategy: The contract is range-bound. Avoid trading in this session.

Supports: 11,930 and 11,900

Resistances: 11,960 and 11,980

Published on July 03, 2019
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