Nifty 50 August Futures (11,573)

The benchmark indices -- the Sensex and the Nifty started the session with a gap-up open and continued to gain on the back of strong buying interest. The market breadth of the Nifty index is biased towards advances.

Apart from the Nifty IT sector index, other sectoral indices are trading in the positive territory. Overall, the near-term stance is bullish for the benchmark indices as they managed to surpass key resistances.

The Nifty August month futures contract also began the session with a gap-up open at 11,518, breaching the key resistance at 11,500. After marking an intra-day low at 11,510, the contract resumed its up move surpassing the next resistance at 11,550 levels.

It has recorded an intra-day high of 11,577. The near-term outlook will remain bullish as long as the contract trades above the key support level of 11,500.

Traders with a near-term perspective can buy the contract in dips with a fixed stop-loss. Key supports are at 11,550 and 11,520. Next key supports below 11,520 are placed at 11,500 and 11,475 levels.

A strong rally beyond 11,580 can take the contract higher to 11,600. Subsequent resistances are at 11,625 and 11,650 levels.

Strategy : Buy in dips with a fixed stop-loss

Supports: 11,550 and 11,520

Resistances : 11,580 and 11,600

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