The Sensex and the Nifty commenced the session in negative territory and declined intially; the key indices entered the positive territory. Both the Sensex and the Nifty have gained 1 per cent each so far. The US indices, S&P 500 and Dow Jones had surged 0.9 per cent and 0.5 per cent respectively in the last session. The Hang Seng index has climbed 1.4 per cent to 24,207 in today's session. Market breadth of the Nifty index is biased towards advances. The volatility index, India VIX has slumped 4.6 per cent to 41.5 levels. The Nifty mid and small-cap indices have climbed 1 per cent and 0.74 per cent respectively. Among the sectoral indices, the Nifty Bank index has jumped 2 per cent backed by rally in the private sector banks while the PSU banks are witnessing selling interest. The Nifty Financial Service sector index has jumped 3 per cent. Nifty FMCG is the top loser that has slumped 1.5 per cent.

After a positive open at 9,214 the Nifty May month contract started to decline, breaching the key support at 9,200. However, the contract registered an intra-day low at 9,125 and bounced back strongly, moving above 9,200 levels. The near-term stance stays positive as long as the contract trades above 9,250 levels. Traders can make use of intra-day dips to buy with a fixed stop-loss at 9,240 levels. A strong rally above 9,350 can take the contract higher to 9,375 and then to 9,400. Subsequent resistances are at 9,430 and 9,450. On the other hand, a strong fall below the key base level of 9,250 can bring back selling interest and pull the contract down to 9,200. Key supports below this level are at 9,150 and 9,125.

Strategy: Buy in declines with a fixed stop-loss at 9,240 levels

Supports: 9,250 and 9,000

Resistances: 9,350 and 9,375

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