BL Research Bureau

The Sensex and the Nifty 50 indices began the session on a positive note amid weak Asian markets. The Nikkei 225 is down by 0.36 per cent to 27,424 and Hang Seng index has fallen 1 per cent to 25,683 levels in today's session. Following an initial rally, the domestic benchmark indices, the Sensex and the Nifty, started to decline on the back of profit booking at higher levels and the indices are down by 0.2 per cent each. The market breadth of the Nifty 50 is biased towards declines. The India VIX is up by 0.27 per cent to 13.49 levels. The Nifty mid and small-cap indices are down by 1 per cent and 0.6 per cent respectively. Among the sectoral indices, the Nifty IT has surged 1.8 per cent due to buying interest and Nifty FMCG as well as Pharma sectoral indices are up by 0.6 and 0.3 per cent correspondingly.

The Nifty August month contract began the session on a negative note, opening at 16,543. After an initial rally, the contract recorded an intraday high at 16,573 and started to decline. It recorded an intraday low at 16,483 and recovered marginally. But the contract met with a resistance at 16,530 and has started to decline again. A strong rally above 16,530 is needed to take the contract higher to 16,550 and then to 16,570 levels. Traders should wait and can take fresh long positions above 16,530 levels with a fixed stop-loss. On the downside, if the contract falls below the immediate support level of 16,480 it can witness selling pressure and pull the contract down to 16,450 levels. Next supports are placed at 16,425 and 16,400 levels.

Strategy: Go long only if the contract rallies above 16,530 levels with a fixed stop-loss

Supports: 16,480 and 16,450

Resistances: 16,530 and 16,550

Related Topics