Taking negative cues from the global markets, the Sensex and the Nifty 50 began the session with a gap-down open. The Asia pacific indices, the Nikkei 225 has declined 1 per cent to 27,013 and Hang Seng index has tumbled 1.7 per cent to 24,884 levels in today's session. Following the gap-down open, the Sensex and the Nifty 50 have trimmed their intra-day loss to 0.37 per cent and 0.55 per cent respectively. The market breadth of the Nifty 50 is biased towards declines. The volatility index - India VIX has jumped 7.5 per cent to 13.8 levels. Witnessing selling pressure, the Nifty mid and small-cap indices have declined 1.2 per cent and 1.5 per cent correspondingly. Only Nifty FMCG sectoral index is featuring in the positive territory, gaining 0.86 per cent. Top sectoral losers are Nifty metal that has plummeted 4.5 per cent and Nifty media which has fallen 2.5 per cent.

The Nifty August month contract began the session with a gap-down open at 16,400. After an initial decline the contract marked an intra-day low at 16,342 and started to move higher. The contract has surpassed the key level at 16,400 and registered an intra-day high at 16,495 levels. Thereafter the key support at around 16,400 had provided base for the contract. A rally above the immediate resistance level of 16,480 can take the contract higher to 16,500 and then to 16,525 levels. Traders with high-risk appetite can go long above 16,480 with a fixed stop-loss. Conversely if the contract slumps below the key base level of 16,400, pressure will be witnessed and the contract can decline to 16,370 and then to 16,350 levels. Next supports are placed at 16,330 and 16,300 levels. As long as the contract trades between 16,400 and 16,480 traders should avoid taking fresh positions.

Strategy: The contract is volatile in the band between 16,400 and 16,480. Avoid taking fresh positions in this band

Supports: 16,400 and 16,370

Resistances: 16,480 and 16,500

Related Topics
comment COMMENT NOW