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Nifty 50 August Futures (11,225)
Following an initial rally, the Sensex and the Nifty witnessed selling pressure at higher level and began to decline. But the benchmark indices took support at the intra-day low and started to trend upwards.
The market breadth of the Nifty index is marginally biased towards advances. The volatility index, India VIX has slumped 1.2 per cent to 12.9. Although the key indices hovers in the positive territory, the Nifty mid and small-cap indices have fallen 0.6 per cent and 0.9 per cent respectively.
Among the sectoral indices, buying interest is seen in Nifty Pharma and IT indices which have advanced 0.8 per cent and 0.5 per cent correspondingly. However, the Nifty PSU Bank has declined almost 2 per cent.
The Nifty August futures contract commenced the session with a gap-open at 11,250. After marking an intra-day high at 11,289, the contract started to decline due to selling interest. The contract once again began to trend upwards, taking support from the intra-day low at 11,176.
Traders can consider initiating fresh long positions on a strong rally above the immediate resistance at 11,230 with a fixed stop-loss. The contract can trend upwards to 11,250 and 11,275 levels. Key supports below 11,200 are at 11,175 and 11,150 levels.
Strategy: Go long on a strong rally above 11,230 with a fixed stop-loss
Supports: 11,200 and 11,175
Resistances: 11,230 and 11,250
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