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Nifty 50 August futures (11,727)
Taking mixed cues from the global markets, the Sensex and the Nifty started the session on a flat note. The Nikkei 225 is choppy and added 34 points to hit 22,848 levels, while the Hang Seng index is hovering flat at 28,346 levels.
After an initial rally, the domestic benchmark indices turned volatile and slipped into negative territory. Both the Sensex and the Nifty continue to vacillate between negative and positive territories. The advance/ decline ratio of the Nifty index is biased towards declines. The volatility index, India VIX, has advanced 1.16 per cent to 12.57 levels in today's session.
The Nifty August month futures contract began the session at par with the previous close at 11,751 levels. Following an initial up-move to an intra-day high of 11,763, the contract witnessed selling pressure and began to decline. Breaching key support at 11,750, the contract marked an intra-day low at 11,725.
The near-term outlook will remain bearish as long as the contract trades below 11,750 levels. Traders with a near-term view can go short with a stop-loss at 11,750 levels. A strong fall below the immediate support level of 11,725 can drag the contract down to 11,700. A further decline below 11,700 can pull the contract lower to 11,680 and 11,650 levels in the near term. Key resistances above 11,750 are at 11,770 and 11,790 levels.
Strategy: Go short at current levels with a fixed stop-loss at 11,750 levels
Supports: 11,725 and 11,700
Resistances: 11,750 and 11,770
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