The Sensex and the Nifty commenced the session on a flat note and continued to move in a sideways range thereafter. The Nifty mid and small-cap indices are also trading flat. The volatility index, India VIX is hovering flat at 21.09 levels. The Nifty metal index has slumped over 1 per cent witnessing selling interest. The market breadth of the Nifty index is at break-even.
The Nifty April month futures contract started the day at 11,648 levels. After an initial rally to 11,664 levels, the contract declined to record an intra-day low at 11,625. Subsequently, the contract continues to trade in a narrow range in the band between 11,630 and 11,660. As long as the contract trades in the range, the near-term traders should tread with caution.
Fresh long position can be initiated on a strong rally above 11,660 levels with a fixed stop-loss. An emphatic move beyond 11,660 can take the contract higher to 11,685 and 11,700 levels. Key resistances beyond 11,700 are placed at 11,725 and 11,750 levels. On the other hand, a slump below 11,630 will bring back selling pressure and drag the contract down to 11,600 and then to 11,575 levels. In that case, traders can go short with a fixed stop-loss.
Strategy: The contract is range-bound once again. Desist trading for the session as long as it trades in the band between 11,630 and 11,660.
Supports: 11,630 and 11,600
Resistances: 11,660 and 11,685