Nifty 50 June futures (10,790)

Taking bearish cues from the global markets, the domestic indices started the session in negative territory, with a gap-down opening. The Dow Jones fell 0.5 per cent to 25,201 and S&P 500 index slipped 0.4 per cent in the last session. The Nikkei 225 has slumped 1 per cent to 22,738 levels and Hang Seng index has plunged 1.1 per cent to 30,384 levels in today's session. Both the Nifty and the Sensex began the session with a gap-down opening and continue to trend in negative territory. The market breadth of the Nifty index is biased towards declines.

The Nifty June futures contract that was trading at a discount to the underlying value has bridged the gap and is turning premium now. The contract started the session with a gap-down opening at 10,823 levels. After marking an intra-day high of 10,829 the contract resumed its down-move and breached a key support at 10,800. The contract has recorded an intra-day low at 10,770 levels. The near-term outlook remains bearish as long as the contract trades below 10,820 levels. Traders can make use of intra-day rallies to sell the contract with a stop-loss at 10,825 levels. The contract can test support at 10,770 levels. A strong fall below this level can pull the contract down to 10,750 levels and then to 10,730 levels. Key support below 10,730 is at 10,700. On the other hand, key resistances at 10,820 and 10,845 can limit the upside for the contract. A decisive rally beyond 10,845 is required to bring back the bullish momentum and take the contract higher to 10,865 or 10,875 levels.

Strategy : Sell in rallies with a fixed stop-loss at 10,825 levels

Supports : 10,830 and 10,810

Resistances : 10,865 and 10,880

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