The Sensex and the Nifty 50 started the session marginally on positive note and witnessed a corrective decline. But, the benchmark indices recovered from their intra-day low and now trading on flat note. The Asian markets are trading in negative territory, the Nikkei 225 has fallen 0.4 per cent to 22,614 and Hang Seng index has slumped 1 per cent to 26,034 in today's session. The market breadth of the Nifty index is biased towards declines. The volatility index-India VIX has slipped 1.5 per cent to 24.8 levels. While the Nifty mid-cap index has marginally slipped into negative territory, the Nifty small-cap index continues to trade in positive territory, gaining 0.56 per cent. The sectoral indices are trading mixed today. The top gainers are Nifty IT and Nifty PVT Bank which has advanced 1 per cent each. On the other hand, the Nifty PSU Bank and metal indices have fallen 1.3 per cent and 1.5 per cent respectively.

The Nifty 50 July month contract began the session on a positive note at 10,761. After marking intra-day high at 10,767 the contract started to decline, experiencing profit booking at higher levels. The contract declined to record an intra-day low at 10,657 before staging a minor recovery. The contract still hovers in the negative territory. Traders should tread with caution and consider initiating fresh short positions only on a strong fall below 10,660 levels with a fixed stop-loss. In that case, the contract can decline to 10,630 and then to 10,600 levels. On the upside, a decisive rally above 10,755 can take the contract higher to 10,770 and 10,800 levels.

Strategy: Go short only if the contract falls below 10,660 levels with a fixed stop-losss

Supports: 10,700 and 10,660

Resistances: 10,755 and 10,770

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