Nifty 50 August Futures (11,442)

Both the Sensex and the Nifty started the session with a gap-down open, taking bearish cues from the global markets. US indices closed in the negative territory. The Dow Jones fell 0.5 per cent to 25,162 levels and S&P 500 index declined 0.76 per cent to finish at 2,818 during last session.

Asian stocks were also trading in the negative territory. Hang Seng index slumped 0.7 per cent to 27,128 levels. From the intra-day low, the Sensex and the Nifty have been on a recovery mode, but face a key resistance ahead.

The Nifty August month futures contract opened the session with a gap-down at 11,419. After an initial decline, the contract found support at 11,401 and started to recover.

The contract has recorded an intra-day high of 11,460 and faces difficulty in surpassing the key resistance at around 11,460. Only a strong rally beyond this resistance will alter the bearish stance and take the contract higher to 11,480 and 11,500 levels.

A conclusive break above 11,500 can push the contract northwards to 11,525 and 11,550 levels. On the other hand, a decisive fall below the immediate support at 11,400 will bring back selling pressure and drag the contract down to 11,375 and 11,350 levels. Next supports are placed at 11,330 and 11,300 levels.

Therefore, traders should tread with caution as long as the contract is range-bound between 11,400 and 11,460 levels.

Strategy: The contract is range-bound. Desist trading for the session

Supports: 11,400 and 11,375

Resistances: 11,460 and 11,480

 

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