Comments
Nifty 50 September Futures (10,920)
After making a sharp recovery on Friday, the Nifty opened today’s session on a weaker note, pricing in the sharp fall in GDP growth to a six-year low. Rallies are being sold-off and the index is currently trading below its 20-day moving average, falling 1.2 per cent so far today.
The Sensex too has fallen 1.2 per cent in today’s session. Asian peers are trading flat, outperforming Indian indices.
Market breadth is clearly favoring bears, as 40 out of the 50 stocks in the Nifty 50 index is in the red. India-VIX has gone up sharply to 17.76 levels which is 9 per cent higher than its previous close. All sectoral indices have been beaten down with the exception of Nifty IT index. Nifty PSU Bank index is the top loser, falling 3.45 per cent in today’ session.
The Nifty September month contract opened the session with a gap down opening at 10,936 against the previous close of 11,058. The index rallied to make an intraday high at 10,970; however, it declined sharply subsequently and fell to day’s low at 10,901, testing an important level of 10,900. With India-VIX indicating high volatility, traders can sell on rallies, with a stop loss at 10,970.
Strategy: Sell on rallies with stop loss at 10,970.
Supports: 10,860 and 10,800
Resistances: 10,985 and 11,040
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.