Taking cues from the weak Asian markets, the Sensex and the Nifty 50 began the session in the negative territory and bounced up immediately. However, the initial rally failed to sustain and the benchmark indices have begun to decline.

The Nikkei is trading flat at 27,742 and Hang Seng index has tumbled 1.6 per cent to 25,277 levels in today’s session. The Sensex and the Nifty 50 are marginally hovering in the negative territory. The market breadth of the Nifty 50 is biased towards declines. The India VIX has climbed 2.3 per cent to 13.8.

The Nifty mid and small-cap indices are likely to enter the negative territory. Selling pressure is seen in the Nifty Metal index which is down by 1.6 per cent and Nifty PSU Bank index is down by 0.7 per cent. On the other hand, the Nifty PVT Bank and FMCG indices are up by 0.2 per cent and 0.15 per cent respectively.

Also read: Nifty Call: Use intraday dips to buy with a stop-loss at 16,630

The August month contract commenced the session in the negative territory and bounced up. But, the contract met with a key resistance at 16,670 and started to decline. After a drop below the 16,625, the contract took support at around 16,606 and reversed higher. Traders can make use of intraday dips to buy the contract while maintaining a fixed stop-loss at 16,615 levels.

A strong rally above the immediate resistance level of 16,650 can take the contract northwards to 16,670 and then to 16,690-16,700 band. Key supports below 16,600 are placed at 16,575 and 16,550 levels.

  • Strategy: Make use of intraday decline to buy the contract with a fixed stop-loss at 16,615 levels
  • Supports: 16,625 and 16,600
  • Resistances: 16,650 and 16,670
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