Nifty 50 August futures (11,323)

The Sensex and Nifty 50 started the session with a gap-up open amid mixed Asian markets. The Nikkei 225 closed flat at 23,289 and the Hang Seng index slipped marginally to 25,218 levels in today's session.

The domestic key benchmark indices moved sideways after a positive start. But they witness selling interest at higher levels and slipped slightly. The market breadth of the Nifty 50 index is biased towards advances. On the other hand, the India VIX slumped 2.8 per cent to 19.9 levels. Both the Nifty mid and small-cap indices have climbed 0.2 per cent each. Among the sectoral indices, the top gainer is Nifty metal, which has jumped 2.5 per cent. Selling interest is seen in the Nifty auto index that has fallen 0.9 per cent.

Following a positive start at 11,342 levels, the Nifty 50 August month contract recorded an intra-day high at 11,397. It faces key resistance at 11,400. But, it began to decline and took support at 11,301 levels. Currently it is trading in a narrow range between 11,300 and 11,360. Traders should tread with caution as long as the contract is range-bound.

Fresh short positions are recommended with a fixed stop-loss only if the contract falls below 11,300 levels. Subsequent supports below 11,300 are at 11,275 and 11,250. On the upside, a strong break above 11,400 can reinforce the bullish momentum and take the contract northwards to 11,430 and then to 11,450 levels. Immediate resistances are placed at 11,360 and 11,380.

Strategy: The contract is range-bound. Tread with caution

Supports: 11,300 and 11,275

Resistances: 11,360 and 11,380

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