The Sensex and the Nifty commenced the session on a flat note in the midst of mixed Asian cues. US markets had plunged sharply last session and the Nikkei 225 index has tumbled 3.3 per cent 22,605 levels while Hang Seng index is trading flat, gaining 0.15 per cent to 26,861 levels in today's session. After initial choppiness, the Sensex and the Nifty have begun to trend upwards and have gained about 0.3 and 0.26 per cent respectively. The market breadth of the Nifty index is biased towards advances. After high volatility in the previous session, the India VIX has slumped 4 per cent to 16.2 levels. The Nifty mid and small-cap indices are marginally trading in the green. The Nifty Pharma sectoral index is trading in red tumbling 1.7 per cent and the Nifty Auto index has entered the negative territory. While buying interest is seen in the Nifty Metal and Realty which has advanced 1 per cent and 0.8 per cent respectively.

The Nifty futures contract started the session with a gap-up open at 11,878 to its previous close of 11,827 levels. After an initial decline to the intra-day low 11,814 the contract bounced back and has breached a key resistance at 11,850. But the contract faces difficulty in surpassing the key resistance at 11,880. A strong rally above this barrier can push the contract higher to 11,900 and then to 11,925 levels. Subsequent resistances are at 11,950 and 11,980 levels. Key supports are at placed at 11,850 and 11,825 levels.

Strategy: Go long on a strong rally above 11,880 levels with a fixed stop-loss

Supports: 11,850 and 11,825

Resistances: 11,880 and 11,900

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