Nifty 50 August futures (10,955)

The Sensex and Nifty began the session on a flat note amid choppy Asian markets. The Nikkei 225 has trimmed its intra-day loss and is down by 0.3 per cent to 20,516, while the Hang Seng index is trading flat at 25,960.

Both the Sensex and the Nifty remain volatile in a narrow range. The market breadth of the Nifty index is biased towards declines. The India VIX has marginally declined by 0.4 per cent to 16 levels. Buying interest is seen in the Nifty mid and small cap indices, which have gained 0.6 per cent and 0.8 per cent respectively.

The Nifty August contract commenced the session with a gap-down open at 10,950. It recorded an intra-day low at 10,894 and took support at 10,900 levels.

On the upside, the key resistance at 11,000 is capping the rally and the contract has marked an intra-day high at 10,993. A strong rally above 11,000 can take the contract higher to 11,030 and 11,050 levels. But a decisive fall below 10,900 can drag the contract down to 10,875 and 10,850 levels.

Next key supports below 10,850 are at 10,825 and 10,800 levels. The contract is range-bound between 10,900 and 11,000. Traders should tread with caution and desist from trading as long as the contract is range-bound.

Strategy: The contract is range-bound, desist from trading for the session

Supports: 10,900 and 10,875

Resistances: 11,000 and 11,030