Nifty 50 April Futures (11,672)

After an initial rally, both the Sensex and the Nifty began to witness selling pressure at higher levels and began to decline. The benchmark indices feature in the negative territory.

The market breadth of the Nifty index is biased towards declines. The India VIX has gained 1.9 per cent to 20.52 levels. Selling pressure is seen in Nifty mid and small cap indices which have slumped 0.6 per cent and 0.4 per cent respectively.

The Nifty April month contract began the session with a gap-up open at 11,707. But subsequently it started to decline experiencing selling pressure. The contract breached a key support at 11,675 and marked an intra-day low at 11,632.

As long as the contract trades below the key resistance level of 11,700, the near-term outlook will remain bearish. Traders can make use of intra-day rallies to sell the contract with a stop-loss at 11,705. The contract can continue to trend downwards and test supports at 11,630 and then at 11,600. A decisive tumble below 11,600 can drag the contract down to 11,575 and 11,550 levels.

Key resistances above 11,700 are placed at 11,725 and 11,750 levels.

Strategy: Sell the contract in rallies while maintaining a stop-loss at 11,705 levels.

Supports: 11,630 and 11,600

Resistances: 11,700 and 11,725

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