Nifty 50 July Futures (11,490)

 

The Sensex and Nifty began the session on a flat note. Following an initial rally, both the key indices started to decline experiencing selling pressure at higher levels. The Nikkei 225 is hovering flat at around 21,533, while the Hang Seng index has gained marginally by 0.26 per cent to 28,188 levels in today's session.

 

The market breadth of the Nifty index is biased towards declines. The India VIX, volatility index has advanced 0.9 per cent to 13.86 levels. The Nifty mid and small-cap indices have declined 0.8 per cent and 0.55 per cent respectively. All the sectoral indices are trading in the red and Nifty Metal and Realty are top losers.

The Nifty futures July month contract started the session on a flat note, opening at 11,549. After an initial rally to the intra-day high of 11,593, the contract reversed direction and began to decline. The contract breached a key support at 11,500, and has marked an intra-day low at 11,467. The near-term outlook will remain bearish as long as the contract trades below 11,525 levels.

Traders can make use of intra-day rallies to go short, with a stop-loss at 11,525 levels. A strong fall below 11,475 can pull the contract down to 11,450 and then to 11,430 levels. The next key support is at 11,400. On the other hand, an emphatic rally above 11,525 will pave the way for a corrective rally to 11,550 and 11,575 levels. To bring back the bullish momentum, the contract needs to decisively move above 11,575 levels. Subsequent resistances are at 11,600 and 11,620.

Strategy: Make use of intra-day rallies to sell with a stop-loss at 11,525 levels

 

Supports: 11,475 and 11,450

Resistances: 11,500 and 11.525

 

 

 

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