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Nifty 50 September Futures (11,460)
The Sensex and the Nifty 50 commenced the session on a flat note amid negative Asian market. The Hang Seng index has slumped 1.6 per cent to 24,081 and CSI 300 index has dropped about 1 per cent to 4,691 levels in today's session. Both the Sensex and the Nifty 50 have slipped about 0.1 per cent and 0.2 per cent respectively. The market breadth of the Nifty 50 is biased towards declines. On the other hand, the India VIX has climbed 1.1 per cent to 20.2 levels. The Nifty mid and small-cap indices have slumped 1 per cent and 0.8 per cent respectively. Bearing the Nifty IT index that has jumped 2 per cent other sectoral indices are trading in the red. The top losers are Nifty metal and realty that have declined 1.9 per cent each.
The Nifty 50 September month contract started the session with a gap-down open at 11,491. After an initial rally, the contract marked an intra-day high at 11,527 and began to decline. The contract has slipped below the key support at 11,500 and marked an intra-day low at 11,444. The near term outlook remains bearish as long as the contract trades below 11,500 levels. Traders can make use of intra-day rallies to initiate fresh short positions with a fixed stop-loss at 11,510. A decisive fall below the immediate support level of 11,450 can pull the contract down to 11,425 and then to 11,400. Subsequent supports are at 11,380 and 11,350 levels. On the upside, only a strong rally above 11,520 the near-term stance will turn positive. In that case, a corrective rally to 11,540 and then to 11,560 levels is possible.
Strategy: Sell on rallies with a fixed stop-loss at 11,510
Supports: 11,450 and 11,425
Resistances: 11,500 and 11,520
BL Research Bureau
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