The Sensex and the Nifty 50 started the session on a positive note and slipped into the negative territory. Both the benchmark indices continue to hover in the negative territory. The Asian markets are hovering almost flat, the Nikkei 225 is at around 29,048 levels and Hang Seng index is at trading at around 29,262 levels in today’s session. The market breadth of the Nifty 50 is biased towards declines.

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The India VIX has fallen 0.7 per cent to 13.2 levels. Both the Nifty mid and small-cap indices have climbed 0.5 per cent each. Among the sectoral indices, the Nifty PSU Bank is the top gainer that has advanced 2 per cent followed by Nifty metal with 1.75 per cent gain. Selling interest is seen in the Nifty IT and media that have declined 0.6 per cent and 0.4 per cent respectively.

The Nifty July month contract began the session with a gap-up open at 15,921 and recorded an intraday high at 15,930 levels. The contract has slipped below the key level of 15,900 and marked an intraday low at 15,831 levels. From the intraday low the contract is in a recovery mode.

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However, the contract faces a key resistance at 15,900 levels. A strong rally above this level is needed to strengthen the bullish momentum and take the contract higher to 15,930 and then to 15,950 levels. Key supports below 15,860 are placed at 15,840 and 15,820 levels. An emphatic plunge below the crucial base level of 15,800 will bring back selling pressure and pull the contract down to 15,770 and 15,750 levels.

  • Strategy: Go long on a strong rally above 15,900 levels with a fixed stop-loss
  • Supports: 15,860 and 15,840
  • Resistances: 15,900 and 15,930