BL Research Bureau
The Sensex and the Nifty 50 started the session on a positive note, taking cues from the positive Asian markets. The Nikkei 225 is up by 0.59 per cent to 27,585 levels and Hang Seng index is also up by 0.5 per cent to 25,873 levels in today's session. After a gap-up open, the Sensex and the Nifty 50 have begun to decline on the back of profit booking and both the indices trading on a flat note. But the market breath of the Nifty 50 is slightly biased towards declines. The India VIX is down by 1.9 per cent to 13.15 levels. The Nifty mid and small-cap indices are mixed. Top sectoral gainers are Nifty Pharma, PSU Bank, FMCG and IT in the range between 0.25 per cent and 0.55 per cent. Weakness is seen in the Nifty metal index which is down by 1.2 per cent followed by Nifty realty index which has slipped 0.9 per cent.
The August month contract began the session with a gap-up open at 16,668 against the previous close of 16,595. After marking an intraday high at 16,688 the contract started to decline and has slipped below the key level of 16,600. Key immediate support is at 16,560 levels. The contract could remain in the range between 16,560 and 16,600 for a while before taking a clear direction. Traders should tread with caution at this juncture. A strong rally above 16,600 can take the contract higher to 16,640 and then to 16,660 or 16,675 levels. But, a decisive fall below the support level of 16,560 can bring back selling pressure and drag the contract down to 16,540 and then to 16,520 levels. Next key support is at 16,500.
Strategy: Range-bound between 16,560 and 16,600. Tread with caution
Supports: 16,560 and 16,540
Resistances: 16,600 and 16,640
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