Nifty 50 September Futures (11,315)

Taking cues from the bullish global markets, the Sensex and the Nifty began the session on a positive note. On Tuesday, the Dow Jones and S&P 500 had advanced 0.7 per cent and 0.5 per cent respectively.

In the Asian markets, the Nikkei 225 gained 1 per cent to 23,672 and Hang Seng index also added 1 per cent to 27,390 in today's session. Both the Sensex and the Nifty continue to trade in the positive territory amid volatility.

The market breadth of the Nifty index is biased towards advances. Volatility index India VIX slipped almost 2 per cent to 14.14 levels. However, the mid- and small-cap indices continue to trade in the negative territory and were down about 0.5 per cent each.

September futures contract started the session with a gap-up opening at 11,348. After an initial decline, the contract marked an intra-day low of 11,313 and then bounced up. The contract has recorded an intra-day high of 11,373.

However, the contract witnessed selling pressure at higher levels and began to decline once again. Traders can make use of intra-day rallies to go short with a stop-loss at 11,350. Resumption of the down-move and a decisive fall below 11,300 can drag the contract down to 11,270 and 11,250 levels. In that case, desist taking fresh long positions.

On the upside, the contract can encounter resistance at 11,350 and 11,375 levels. A strong rally beyond 11,375 is required to take the contract higher to 11,400 and 11,420 levels.

Strategy : Go short with a stop-loss at 11,350

Supports : 11,300 and 11,270

Resistances : 11,450 and 11,475

 

 

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