Tracking the positive Asian markets, the Sensex and the Nifty 50 began the session with a gap-up open and continued to trend upwards after an initial dip. The local benchmark indices – the Sensex and the Nifty 50 have climbed 0.4 per cent each.

The market breadth of the Nifty 50 is biased towards advances. The India VIX has fallen 2.5 per cent implying decrease in volatility. Both the Nifty mid and small-cap indices have advanced 0.8 per cent and 1.2 per cent respectively.

Also read: Sensex up 256 pts intraday, Nifty above 16,500 led by metals and financials

The August month Nifty futures contract commenced the session with a gap-up open at 16,555. Following an initial decline, the contract recorded an intraday low at 16,495 and continued to trend upwards. The near-term stance stays positive as long as the contract trades above 16,500 levels.

Traders can buy the contract in declines with a stop-loss at 16,520 levels. A decisive rally above the immediate resistance level of 16,570 can take the contract northwards to 16,600. A further rally beyond 16,600 can take the contract northwards to 16,630 and then to 16,650 levels. Key supports below 16,520 and 16,500 levels. Supports below 16,500 are placed at 16,470 and 16,450.

  • Strategy: Buy in intraday dips with a fixed stop-loss at 16,520 levels
  • Supports: 16,520 and 16,500
  • Resistances: 16,600 and 16,630
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