Nifty 50 May Futures (9,225)

The domestic benchmark indices- the Sensex and the Nifty commenced the session with a gap-down open, as the global markets display weak cues. The Dow Jones and S&P 500 index had slumped 0.9 per cent and 0.7 per cent respectively in last sessions. Asian markets are showing mixed cues, the Nikkei 225 has marginally climbed by 0.28 per cent to 19,674 while Hang Seng index has declined 0.7 per cent to 23,969 levels in today's session. After an initial rally both the Sensex and the Nifty started to decline and are hovering in the negative territory, each declining 0.6 per cent so far. The market breadth of the Nifty index is biased towards declines. Also, the India VIX has fallen 2.3 per cent to 40.2 levels. The Nifty mid and small-cap indices are resilient in today's session and have advanced 0.4 per cent and 0.75 per cent correspondingly. Among the sectoral indices, the Nifty media is the top gainers that have climbed 0.9 per cent. Nifty Bank and Nifty financial service have slumped 1.2 per cent and 1.3 per cent respectively.

The Nifty May month contract began the session with a gap-down open at 9,157. After initial volatility, the contract marked an intra-day high at 9,264 and started to decline. But, it took support at around 9,175 and bounced up slightly. The index is range-bound between 9,175 and 9,235. A strong rally above 9,235 can take it higher to 9,250 and then to 9,280 levels. Next key resistances are at 9,300 and 9,330. Conversely, if the contract slumps below 9,175 selling pressure can pull the contract down to 9,150 and 9,125 levels. Subsequent support is at 9,100. Traders should tread with caution.

Strategy: The contract is range-bound, tread with caution

Supports: 9,175 and 9,150

Resistances: 9,235 and 9,250

 

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