Nifty 50 October Futures (10,633)

The Sensex and the Nifty began the session with a wide gap-down open and continued to trend downwards on the back of weak Asian markets, the rupee hitting a fresh low and crude oil price touching a four-year peak.

The Sensex has plunged more than 800 points and the Nifty has nose-dived more than 250 points in today's session. The market breadth of the Nifty is biased towards declines. On the other hand, India VIX, the volatility index has jumped 6.3 per cent to 19.26 levels. All the sectoral indices are trading in the negative territory, dragged by Nifty Pharma and Nifty Auto indices which have tumbled more than 2.6 per cent.

The Nifty October futures commenced the session with a large gap-down open at 10,752. After an initial rally, the contract marked an intra-day high at 10,799 and resumed its down-move. While trending down, the contract has decisively breached a key support at 10,700 and registered an intra-day low at 10,633. Though the contract is recovering from its intra-day low of 10,633 it is experiencing selling pressure at higher levels.

As long as the contract trades below 10,700, the near term view is bearish. Traders can sell the contract with a stop-loss at 10,710. But strong rallies beyond 10,700 could witness a corrective up-move and take the contract northwards to 10,730 and 10,750 levels. Key supports are at 10,635 and 10,600.

Strategy : Sell in intra-day rallies with a fixed stop-loss at 10,710 levels.

Supports : 10,635 and 10,600

Resistances : 10,700 and 17,030