Nifty 50 August Futures (16,271)
Following a flat open, the Sensex and the Nifty 50 started to decline marginally on the backing of profit booking. The Sensex is down by 0.2 per cent and the Nifty 50 has fallen 0.19 per cent. The Asian markets are slightly hovering in the positive territory, the Nikkei 225 is up by 0.3 per cent to 27,820 and Hang Seng index is up by 0.1 per cent to 26,233 levels in today’s session. Both the Sensex and the Nifty 50 are experiencing range-bound movement. However, the market breadth of the Nifty 50 is biased towards the advances. The India VIX has fallen 0.87 per cent to 12.7 levels. Both the Nifty mid and small-cap indices have climbed 0.2 per cent each. The secotral indices are mixed while buying interest seen in the Nifty metal, IT and auto sector stocks. On the other hand, selling pressure is witnessed in the Nifty Pharma and media sector stocks.
The Nifty August month contract began the session in negative note, opening at 16,281 levels and marked an intraday high at 16,333. Thereafter the contract started to decline witnessing selling pressure at higher levels. The contract has slipped below the key level of 16,300 levels. The contract has registered an intraday low at 16,247. The near-term weakness will continue as long as the contract trades below 16,300 levels. The contract is range-bound between 16,250 and 16,300 levels. Traders should avoid taking fresh long positions at this juncture as long as the contract trades below 16,300. A fall below 16,250 will be the cue for initiating fresh short positions with a fixed stop-loss. Key supports below 16,250 are placed at 16,230 and 16,200 levels. Supports thereafter are at 16,170 and 16,150 levels. Resistances above 16,300 levels are placed at 16,330 and 16,350 levels.
Strategy: The contract is range-bound. Tread with caution as long as it is range-bound
Supports: 16,250 and 16,230
Resistances: 16,300 and 16,330