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Nifty 50 July Futures (15,672)
Amid mixed Asian markets, the Nifty 50 and the Sensex began the session with a gap-down open and continues to feature in the negative territory. Among the Asian markets, the Nikkei 225 is down by 1.4 per cent to 27,581 levels, whereas the Hang Seng index is up by 1 per cent to 25,338 levels. Following an initial decline, the Sensex and the Nifty 50 are in a recovery mode and have trimmed the intraday loss to 0.6 per cent each. The market breadth of the Nifty 50 is biased towards declines. The India VIX has jumped 7.3 per cent to 14.2 levels. Both the Nifty mid and small-cap indices have fallen 0.6 per cent and 0.9 per cent, respectively. Apart from Nifty FMCG and metal indices which are marginally hovering in the positive territory, other sectoral indices are featuring in the negative territory. Selling pressure is witnessed in the Nifty PSU Bank and Nifty Bank that have tumbled 2 per cent and 1.4 per cent correspondingly.
The Nifty July month contract started the session with a gap-up open at 15,774 and witnessed selling pressure at higher levels. The contract fell below the vital base level of 15,700 and registered an intraday low at 15,510. But, the contract recovered from the intraday low and hovered at 15,650 levels. As long as the contract trades below 15,700 levels, the near-term stance remains bearish. A fall below the immediate support level of 15,620 can pull the contract down to 15,600 and then to 15,575 levels. Next supports are placed at 15,540 and 15,520 levels. Resistances above 15,700 are at 15,720 and 15,740 levels.
Strategy: Sell on rallies with a tight stop-loss at 15,710 levels
Supports: 15,620 and 15,600
Resistances: 15,700 and 15,720
BL Research Bureau
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