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Nifty 50 May Futures (11,677)
Taking cues from the bearish Asian markets as US-China trade tensions escalate, the domestic equity indices - the Sensex and the Nifty began the session with a gap-down open, declining almost 1 per cent each. The China stocks tumbled almost 6 per cent, the Shanghai Shenzhen CSI 300 Index plunged 228 points or 5.8 per cent to 3,684 and the Hang Seng index declined 1,007 points or 3.3 per cent to 29,074 levels in today's session. Following a gap-down open, the Sensex and the Nifty are in a recovery mode and have marginally trimmed their intra-day losses. The market breadth of the Nifty index is biased towards declines. On the other hand, the India VIX has surged more than 9 per cent to 26.38 levels.
The Nifty May month contract began the session with a gap-down open at 11,671, decisively breaching a key support at 11,700 which now acts as a vital resistance. After marking an intra-day low at 11,645, the contract started to recover and has registered an intra-day high at 11,695 levels. The contract faces key resistance at 11,700. A strong rally above this level can witness a corrective rally to 11,725 and 11,750 levels. Traders can consider initiating fresh long positions on a strong rally above 11,700 levels with a fixed stop-loss at 11,690 levels. On the downside, a decisive fall below the key support level of 11,650 can drag the contract down to 11,625 and 11,600 levels.
Strategy : Go long on a strong rally above 11,700 levels with a fixed stop-loss at 11,690.
Supports : 11,650 and 11,625
Resistances: 11,700 and 11,725
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