Nifty 50 July Futures (11,544)
After a gap-down open and initial decline, the Sensex and the Nifty began to recover from their intra-day low. Both the indices are likely to enter the positive territory once again.
However, the market breadth of the Nifty index is slightly biased towards declines. The India VIX has slipped 0.25 per cent to 13.81 levels. The Nifty Mid and Small-cap indices have recovered. Buying interest is seen in Nifty Pharma which has advanced 2.5 per cent while selling pressure is in Nifty IT index which has slumped 1 per cent.
The Nifty July Futures commenced the session with a gap-down open at 11,543. After marking an intra-day low at 11,486 the contract began to recover and is currently in a sideways range. It has recorded an intra-day high at 11,594.
The corrective rally can progress further on a strong rally above 11,575 levels. The contract can retest 11,594. A further rally above 11,594 can take the contract higher to 11,620 and 11,650 levels.
Traders can buy the contract on a rally above 11,575 levels with a fixed stop-loss. On the other hand, a strong fall below 11,525 can drag the contract down to 11,500 and 11,486 levels.
Strategy: Go long on a rally above 11,575 levels with a fixed stop-loss
Supports: 11,525 and 11,500
Resistances: 11,575 and 11.593