Nifty 50 August Futures (16,657)

The Sensex and the Nifty 50 started the session with a gap-up open amid weak Asian markets. The Nikkei 225 is hovering flat at 27,724 levels and Hang Seng index is down by 0.5 per cent to 25,592 levels in today’s session. The Sensex and the Nifty 50 have climbed 0.2 per cent and 0.3 per cent, respectively. The market breadth of the Nifty 50 is biased towards advances. India VIX has gained 2.5 per cent to 13.5 levels, indicating increase in volatility. The Nifty mid- and small-cap indices have advanced 0.4 per cent and 0.75 per cent, respectively. Among the sectoral indices, Nifty Metal is the top gainer with 0.98 per cent, followed by Nifty IT and FMCG, which are up by 0.87 and 0.77 per cent, correspondingly. Selling pressure is seen in the Nifty Realty and Nifty Bank indices, which are down by 0.5 per cent and 0.3 per cent, respectively.

The Nifty August contract commenced the session with a gap-up open at 16,652. After marking an intraday high at 16,713 the contract slipped and recorded an intraday low at 16,621. But the contract bounced up past the immediate resistance level at 16,650. Make use of intraday dips to buy the contract in declines with a fixed stop-loss at 16,630 levels. A rally above the immediate resistance level of 16,670 can take the contract higher to 16,690 and then to 16,710 levels. Key supports below 16,640 are placed at 16,620 and 16,600 levels.

Strategy: Make use of intraday dips to buy the contract with a tight stop-loss at 16,630 levels

Supports: 16,640 and 16,620

Resistances: 16,670 and 16,690

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