The Sensex and the Nifty 50 started the session on a flat note and moved higher in the initial hours of trade. Witnessing selling interest, the benchmark indices slipped into the negative territory. However, the indices have recovered from their intra-day low and have entered the positive territory. The Nikkei 225 has declined 0.4 per cent to 28,941 and Hang Seng index has slipped 0.2 per cent to 28,904 levels in today's session.

The market breadth of the Nifty 50 is biased towards advances. There is an increase in volatility as the India VIX has advanced 1.5 per cent to 15.9 levels. The Nifty mid and small-cap indices have climbed 0.5 per cent and 0.6 per cent respectively. The Nifty Bank is the top loser today, dragged by Nifty PVT Bank which has fallen 0.5 per cent. On the other hand, the Nifty auto and metal have advanced 0.4 per cent each.

The Nifty June month contract commenced the session on a flat note, opening at 15,714. Following an intra-day high marked at 15,756 the contract slipped below the 15,700 levels and recorded an intra-day low at 15,665. However, the contract has moved above 15,700 levels. After a brief upmove the contract had encountered resistance at 15,730 and started to fall. A further fall below the immediate support level of 15,680 will bring back selling interest and pull the contract down to 15,650 levels. Next supports are at 15,625 and 15,600 levels. Traders can initiate fresh short positions with a fixed stop-loss on a fall below 15,680 levels. Key resistances above 15,730 are placed at 15,750 and 15,770 levels.

Strategy: Go short on a fall below 15,680 with a fixed stop-loss

Supports: 15,680 and 15,650

Resistances: 15,730 and 15,750

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