Comments
BL Research Bureau
Nifty 50 September Futures (11,510)
The Nifty 50 index of India opened lower and declined from the beginning of the session. Both the benchmark indices - Nifty 50 and the Sensex are down by 1 per cent in today’s session.
Equity indices across Asia are on a decline where Nikkei has weakened by 0.4 per cent, and Hang Seng has lost 1.24 per cent.
An Advance-Decline ratio of 10-40 in Nifty 50 indicates much bearishness. However, the volatility index – India VIX – has come down to 16.14 levels losing 3.5 per cent today. The only sectoral index that has gained today is Nifty IT index, which is up by half a percentage point. All other indices are in the red led by Nifty PSU bank index and Nifty auto index, which are down by 3.6 and 3.1 per cent respectively.
The September expiry futures contract of the Nifty 50 index opened lower at 11,596 against yesterday’s close of 11,613. The contract appears weak as it slumped briefly below an important level of 11,500 and is hovering around that price area. If the sell-off sustains, it will most likely decline to 11,420 levels. Since the futures are hovering around an important level, traders need to approach the index with caution. Sell only if 11,500 level is decisively broken with stop loss at 11, 560.
Strategy: Sell if 11,500-level is decisively broken with stop loss at 11, 560.
Supports : 11,500 and 11,420
Resistances: 11,560 and 11,590
Comments
COMMENT NOW
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.