The Sensex and the Nifty commenced the session on a positive note, tracking the bullish global markets. The US markets had surged about 1.6 per cent in the previous session. The Nikkei 225 and the Hang Seng index have gained 1 per cent each in today's session.
Extending the bullish momentum, the Sensex and the Nifty continue to trend upwards. The market breadth of the Nifty is biased towards advances. The India VIX has declined 2.7 per cent to trade at 17.36 levels. Although the broader indices have gained about 1 per cent, the Mid and Small cap indices are trading flat showing lack of strength. Traders should tread with caution in mid and small cap segment.
The Nifty futures began the session with a gap-up open at 10,688. After an initial decline to 10,676, the contract continued to trend upwards backed by short covering. The contract has breached a key resistance at 10,700.The near-term stance will remain positive as long as the contract trades above 10,700 levels.
Traders can buy in dips with a fixed stop-loss at 10,700. A strong rally above the immediate resistance at 10,765 can take the contract higher to 10,780 and 10,800 levels. Key supports below 10,700 are placed at 10,675 and 10,650 levels.
Strategy : Buy in in declines with a stop-loss at 10,720 levels.
Supports: 10,725 and 10,700
Resistances : 10,765 and 10,780
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.