Comments
Nifty 50 September futures (11,497)
Though the Asian markets started the session on a positive note, the domestic equity market continued to witness selling pressure following a sharp fall on Monday. The Nikkei 225 has gained 1.4 per cent to 23,420, while the Hang Seng has surged 0.7 per cent to 27,131 levels in today's session. After a flat open, both the Sensex and the Nifty continued to trade choppy with a negative bias. The market breadth of the Nifty index is biased towards declines.
The Nifty September futures started the session with a gap-down opening at 11,388. After an initial rally, the contract marked an intra-day high at 11,438 and resumed its down-move. The contract recorded an intra-day low at 11,357 and has recovered slightly, but it continues to experience selling pressure at higher levels. Traders can make use of intra-day rallies to initiate fresh short positions, while maintaining a fixed stop-loss at 11,425 levels.
On continuation of the down-move, the contract can re-test supports at 11,475 and 11,357. A decisive fall below 11,357 can drag the contract down to 11,330 and 11,300 in the short term. Key resistances are at 11,420 and 11,450 levels. A strong break above 11,450 is needed to bring back the bullish momentum and take the contract northwards to 11,475 and 11,500 levels.
Strategy: Go short on rallies with a stop-loss at 11,425 levels
Supports: 11,375 and 11,357
Resistances: 11,420 and 11,450
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.