Taking positive cues from global markets, the domestic equity benchmark indices – Sensex and the Nifty 50 – started the session in green with a gap-up open. After a minor initial decline, the bellwether indices continued to trend upwards. The US indices – Dow Jones and S&P 500 index – had gained 0.8 per cent and 0.7 per cent, respectively, last session. Asian markets commenced the session on a bullish note with the Nikkei 225 surging 1.7 per cent to 22,573 and Hang Seng index gaining 1.9 per cent to 24,936 levels in Tuesday’s session. Both the Sensex and the Nifty 50 have advanced more than 1.5 per cent each. The market breadth of the Nifty index is biased towards advances. On the other hand, the India VIX slumped 3.5 per cent to 24.2 levels. The Nifty mid and small-cap indices also advanced 1.2 per cent each. Buying interest is seen in Nifty media and Nifty financial service which have climbed 2.8 per cent and 2.3 per cent, respectively. While the Nifty IT and PSU bank have declined 1.2 per cent and 0.5 per cent correspondingly.

The Nifty 50 August month contract began the session with a gap-up at 10,940. Recording an intra-day low at 10,912 the contract resumed the up-move breaking a key resistance at 11,000. It has registered an intra-day high at 11,063. The near-term outlook stays positive as long as the contract trades above 11,000. Traders can buy the contract on dips with a fixed stop-loss at 10,990 levels. A strong rally above 11,070 can push the contract northwards to 11,100. Next resistances are at 11,125 and 11,150 levels. Significant supports below 11,000 are placed at 10,950 and 10,915.

Strategy: Buy on dips with a fixed stop-loss at 10,990 levels

Supports: 11,000 and 10,950

Resistances: 11,070 and 11,100