Nifty 50 August Futures (11,413)

Triggered by negative global cues, the Nifty and the Sensex began the session with a gap-down open. The Nikkei 225 plunged almost 2 per cent to 21,857 and Hang Seng index slumped 1.5 per cent to 27,937 levels.

The US futures index is hovering in the negative territory. Both the Nifty and the Sensex found support at the intra-day low and are in a recovery mode. Both need a decisive close above the key resistances at 11,430 and 37,850 levels, respectively.

The Nifty August futures started the session with a gap-down open at 11,374 and marked an intra-day low of 11,354. Subsequently it recovered to record an intra-day high of 11,423. That said, the contract needs to break above the key resistance at 11,440 to strengthen the bullish momentum.

Traders should tread with caution and consider initiating fresh long positions on a strong rally beyond 11,440 levels with a fixed stop-loss. Next resistances are at 11,460 and 11480 levels.

Key supports are placed at 11,375 and 11,350 levels. A conclusive fall below 11,350 can drag the contract down to 11,330 and 11,300 levels.

Strategy : Go long on a rally beyond 11,440

Supports : 11,440 and 11,460

Resistances : 11,375 and 11,350

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