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Nifty 50 May Futures (11,468)
Taking bearish cues from the global markets, the Sensex and the Nifty extended their decline in today's session also. Both the benchmark indices began the session with a gap-down open and continue to hover in the negative territory. The Nikkei 225 index has declined 1.4 per cent to 21,602 and Hang Seng index has dropped 1.2 per cent to 28,996 in today's session. The market breadth of the Nifty index is biased towards declines. The India VIX has also fallen 0.5 per cent to 26.33 levels. The Nifty small-cap index is experiencing selling pressure and the index has slumped 0.8 per cent.
The Nifty May month contract began the session with a gap-down open at 11,509. After recording an intra-day high at 11,519 the contract continued to decline, breaching a key support at 11,500. As long as the contract trades below 11,500 the near-term outlook will remain bearish. Traders can make use of intra-day rallies to go short while maintaining a stop-loss at 11,485 levels. A strong fall below the immediate support level of 11,455 can drag the contract down to 11,430 and then to 11,410 levels. On the upside, a strong break above 11,500 can bring on a corrective rallyto 11,525 and then to 11,550 levels.
Strategy: Sell in rallies while maintaining a fixed stop-loss at 11,485 levels
Supports: 11,455 and 11,430
Resistances: 11,500 and 11,525
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