Nifty 50 August Futures (11,310)
Taking negative cues from the weak Asian market, Sensex and Nifty 50 started the session with a gap-down open and continue to trade in the negative territory. The Nikkei 225 index has declined one per cent to 22,880 and Hang Seng index tumbled 1.8 per cent to 24,706 levels in today's session. Both Sensex and Nifty 50 declined 0.76 per cent and 0.6 per cent respectively. The market breadth of the Nifty 50 index is biased towards declines. The India VIX jumped 2.2 per cent to 20.3 levels. Both the Nifty mid and small-cap indices are resilient and have gained 1 per cent each. The Nifty media is the top gainer, jumped 3 per cent. On the other hand, selling interest is seen in the Nifty Bank, Financial Services and PVT Bank that has declined 1 per cent each.
Following a gap-down open at 11,298, the Nifty 50 futures contract moved higher and has marked an intra-day high at 11,348 levels. The contract is broadly range-bound between 11,290 and 11,350. Traders should tread with caution as long as the contract is range-bound. A strong rally above 11,350 can push the contract higher to 11,375 and then to 11,400 levels. But an emphatic fall below 11,290 can strengthen the bearish momentum and pull the contract down to 11,270 and then to 11,250. Next key supports are at 11,230 and 11,200. Fresh short positions can be initiated with a fixed stop-loss if the contract drops below 11,290 levels.
Strategy: Fresh short positions can be initiated below 11,290
Supports: 11,290 and 11,270
Resistances: 11,350 and 11,375
Yoganand D
BL Research Bureau
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.