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BL Research Bureau
Nifty 50 August Futures (11,311)
The domestic equity indices - the Sensex and the Nifty - began the session on flat note and were trading in the red initially. The Asian markets are hovering in negative territory; the Nikkei 225 index has declined 0.45 per cent to 21,658 and the Hang Seng index has fallen 0.46 per cent to 28,462. Following an initial decline, both the Sensex and the Nifty managed to recover and entered the positive territory. The market breadth of the Nifty index is biased towards advances. On the other hand, India VIX has slumped 1.9 per cent to 12.3 levels. Apart from the Nifty IT index which has declined 0.9 per cent, all the key sectoral indices are trading in positive territory. The Nifty PSU Bank and Auto have gained more than 2 per cent in today's session.
The Nifty August month futures began the session at 11,300 and marked an intra-day low at 11,247. Subsequently, the contract recovered and entered the positive zone. It has recorded an intra-day high at 11,345 but witnesses selling pressure at higher levels. Traders should tread with caution and initiate long positions on a strong rally above 11,330 levels. Key resistances above 11,330 are at 11,350 and 11,375. On the downside, a strong tumble below 11,250 can drag the contract down to 11,225 and 11,200 levels.
Strategy: Go long only if the contract rallies above 11,330 levels with a fixed stop-loss
Supports: 11,250 and 11,225
Resistances: 11,330 and 11,350
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