Nifty 50 September futures (11,497)
Though the Asian markets started the session on a positive note, the domestic equity market continued to witness selling pressure following a sharp fall on Monday. The Nikkei 225 has gained 1.4 per cent to 23,420, while the Hang Seng has surged 0.7 per cent to 27,131 levels in today's session. After a flat open, both the Sensex and the Nifty continued to trade choppy with a negative bias. The market breadth of the Nifty index is biased towards declines.
The Nifty September futures started the session with a gap-down opening at 11,388. After an initial rally, the contract marked an intra-day high at 11,438 and resumed its down-move. The contract recorded an intra-day low at 11,357 and has recovered slightly, but it continues to experience selling pressure at higher levels. Traders can make use of intra-day rallies to initiate fresh short positions, while maintaining a fixed stop-loss at 11,425 levels.
On continuation of the down-move, the contract can re-test supports at 11,475 and 11,357. A decisive fall below 11,357 can drag the contract down to 11,330 and 11,300 in the short term. Key resistances are at 11,420 and 11,450 levels. A strong break above 11,450 is needed to bring back the bullish momentum and take the contract northwards to 11,475 and 11,500 levels.
Strategy: Go short on rallies with a stop-loss at 11,425 levels
Supports: 11,375 and 11,357
Resistances: 11,420 and 11,450
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