The Sensex and the Nifty 50 open the session on a positive note and subsequently began to decline after an initial rally. The Asian stocks are trading mixed; the Nikkei 225 is marginally down by 0.16 per cent to 28,814 while Hang Seng index is up by 0.95 per cent to 29,428 levels in today’s session. Both the Nifty 50 and Sensex are moving sideways in a narrow range between positive and negative territory.

The market breadth of the Nifty 50 index is marginally biased towards advances. Although the benchmark indices are trading flat, the India VIX has jumped 4 per cent to 17.5 per cent implying increase in volatility. Nifty mid and small-cap indices have declines 0.2 per cent and 0.5 per cent respectively. Baring Nifty FMCG and media, which are slightly hovering in the positive territory, other sectoral indices are featuring in the negative territory. The Nifty metal index has slumped 1.5 per cent witnessing selling interest.

Also read: Sensex, Nifty to open positive on robust economic data

The Nifty June month contract started the session on a positive note, opening at 15,612 against the previous close at 15,583 levels. After recording an intraday high at 15,660 the contract began to decline and has marked an intraday low at 15,546 levels. It has recovered from the intraday low and now tests resistance at 15,610. A strong rally above 15,620 was needed to take the contract higher to 15,645 and then to 15,660 levels.

Next resistance is at 15,700. The contract has surpassed the resistance at 15,620 now and trades above that level. But a strong plunge below 15,550 will bring back selling pressure and pull the contract down to 15,525 and then to 15,500 levels. Next supports are placed at 15,480 and 15,450 levels.

  • Strategy: Buy on dips with a stop-loss 15,600 levels with a fixed stop-loss
  • Supports: 15,600 and 15,550
  • Resistances: 15,645 and 15,660
Related Topics
comment COMMENT NOW