Nifty 50 June Futures (11,948)

The Sensex and the Nifty began the session in negative territory and continued to trend downwards. The key indices have breached key supports and are trading in deep red. The Sensex and the Nifty have slumped about 0.8 per cent each. The market breadth of the Nifty index is biased towards declines.

The India VIX has gained marginally by 0.4 per cent to 15.68 levels. The Nifty mid and small cap indices have declined 1.2 per cent and 1.6 per cent respectively. The Nifty June month contract started the session with a gap-down open at 12,044 levels.

After recording an intra-day high at 12,059 levels, the contract resumed its decline. The contract breached a key support at 12,000 and has marked an intra-day low at 11,937 levels. The near-term stance remains bearish as long as the contract trades below 12,000 levels.

Traders can make use of intra-day rallies to sell the contract with a stop-loss at 12,015 levels. The contract can test supports at 11,935 and 11,920 levels. Next support is at 11,900. Resistances above 12,000 are at 12,025 and 12,050 levels.

Strategy: Sell in rallies while maintaining a stop-loss at 12,015 levels

Supports: 11,935 and 11,920

Resistances: 12,000 and 12,025