Nifty 50 July Futures (11,158)

Tracking the weak Asian markets, the domestic equity indices-- Sensex and Nifty 50-- started the session on flat note and are trading in a narrow range. The Nikkei 225 index has fallen 0.6 per cent to 22,751 levels and Hang Seng index has slipped 0.4 per cent to 25,531 levels in today's session. Both the Sensex and Nifty 50 indices are marginally trading in the positive territory. The market breadth of the Nifty 50 index is biased towards advances. The India VIX, a volatility index, has advanced 1.4 per cent to 24.7 levels. The Nifty mid- and small-cap indices gained 0.8 per cent and 0.7 per cent respectively so far, and have outperformed the bellwether indices. Among the sectoral indices, the Nifty media is the top gainer that jumped 2.2 per cent followed by Nifty metal index up by 1.4 per cent. Selling pressure is on Nifty PSU Bank and Nifty IT index that slumped 0.8 and 0.7 per cent respectively.

The Nifty 50 July month contract started the session on a positive note, opening at 11,186 levels. After marking an intra-day high at 11,203 the index futures began to decline. But, the contract took support at 11,100 and reversed higher. It moves sideways in the band between 11,140 and 11,170. Traders should tread with caution as long as the contract is range-bound. Go long on a strong rally above 11,170 with a fixed stop-loss. The contract can test next resistances at 11,185 and then at 11,200. A further rally above 11,200 can take the contract northwards to 11,225 and 11,250 levels. On the other hand, a strong fall below 11,140 can bring back selling interest and pull the contract down to 11,120 and then to 11,100 levels. A plunge below 11,100 can drag the contract down to 11,075 and 11,050 levels.

Strategy: The index futures is range-bound, tread with caution

Supports: 11,140 and 11,120

Resistances: 11,170 and 11,185