Nifty 50 August Futures (11,004)

The domestic equity indices began the session in negative territory on bearish global cues. The Dow Jones has tumbled 1.2 per cent to 26,864 and S&P 500 had slumped 1.1 per cent to 2,980 in last session. In the Asian markets, the Nikkei 225 is hovering flat but Hang Seng index has declined almost 1 per cent in today's session.

Both the Sensex and the Nifty started the session with a gap-down open and continued to trend downwards. The benchmark indices have declined about 1.2 per cent. The market breadth of the Nifty index is biased towards declines.

On the other hand, the India VIX has gained 4.5 per cent to 14.2 levels. The Nifty Mid and Small-cap indices have fallen 0.7 per cent and 1 per cent respectively. All the sectoral indices are trading in the negative territory and Nifty Media as well as Metal indices have plunged almost 3 per cent each.

The Nifty August month contract started the session with a gap-down open at 11,098 and extended the down-move. The contract breached a key support at 11,000 and recorded an intra-day low at 10,991.

Taking support from the intra-day low the contract currently tests support at 11,000. The significant support at 11,000 could provide a temporary base for the contract. A strong fall below 10,990 can drag the contract down to 10,970 and 10,950 levels.

Next key supports are at 10,925 and 10,900 levels. On the upside, an empatic break above 11,100 can witness a corrective rally to 11,130 and 11,150 levels. Immediate resistances are at 11,050 and 11,100. Traders can make use of intra-day rally to sell the contract with a stop-loss at 11,050 levels.

Strategy: Sell in rallies with a stop-loss at 11,050 levels

Supports : 10,990 and 10,970

Resistances: 11,050 and 11,100