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Nifty 50 August Futures (10,988)
After a flat start and initial rally, both the Sensex and the Nifty began to decline thereafter and entered the negative territory. Both the key indices continue to trade in the negative territory due to selling pressure.
The market breadth of the Nifty index is biased towards declines. The India VIX is hovering flat in the positive area at around 16.8 levels. Both the Nifty mid and small-cap indices have slumped over 1 per cent.
The Nifty August month contract started the session on a flat note, opening at 11,059. It marked an intra-day high at 11,078 and began to decline on the back of selling pressure. The contract breached key support at 11,000 and has registered an intra-day low at 10,977.
Traders can make use of intra-day rallies to go short as long as the contract trades below 11,050 levels with a fixed stop-loss. It can retest the support at 10,977. A strong fall below this level can drag the contract down to 10,950 and 10,925 levels. On the upside, a strong rally above 11,050 is needed to take the contract higher to 11,075 and 11,100 levels.
Strategy: Sell in rallies with stop-loss at 11,050 levels
Supports: 10,977 and 10,950
Resistances: 11,050 and 11,075
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