Nifty 50 May Futures (14,865) – May 11


Taking weak cues from the global markets, the Sensex and the Nifty 50 started the session with a gap-down open today. The Nikkei 225 has tumbled 3 per cent to 28,608 and Hang Seng index has slumped 2.1 per cent to 27,993 levels in today’s session. Following the gap-down open, the domestic benchmark indices – the Sensex and the Nifty 50 have begun to recover from the intra-day low and trimmed the intra-day loss to 0.6 per cent and 0.5 per cent respectively. The market breadth of the Nifty 50 is biased towards declines. The India VIX has fallen 1.2 per cent to 19.9, implying less volatility. On the other hand, the Nifty mid and small-cap indices are showing buying interest and have climbed 0.6 per cent each. The sectoral indices are mixed and top losers are Nifty Financial Service that have fallen 1 per cent and followed by Nifty IT, which has declined 0.9 per cent. The gainers, Nifty media and auto, have advanced 0.88 per cent and 0.4 per cent, respectively.

The Nifty May month contract began the session with a gap-down open at 14,798 against the previous close of 14,984 levels. After recording an intra-day low at 14,785 and then contract started to recover and the contract has surpassed a key resistance at 14,860 levels. The contract marked an intra-day high at 14,939 and is now on a decline once again. Tread with caution as long as the contract trades in the band between 14,860 and 14,900. A strong fall below 14,860 will bring back selling interest and drag the contract down to 14,840 and then to 14,800 levels. On the upside, a decisive breach of the immediate resistance at 14,900 can extend the recovery and take the contract higher to 14,930 and then to 14,950 levels. Next resistances are at 14,975 and 15,000 levels.

Strategy: Go short on a fall below 14,860 with a fixed stop-loss Supports: 14,860 and 14,840 Resistances: 14,900 and 14,930