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Both, negative global cues and domestic weakness made the Sensex and the Nifty start the session in red. Subsequently, the benchmark indices continued to trend downwards, witnessing selling pressure. The Nikkei 225 has slumped over 1 per cent to 20,900 levels and the Hang Seng index has tumbled 1.89 per cent to 27,895 levels in today's session.
The market breadth of the Nifty index is biased towards declines. On the other hand, the India VIX has jumped 9.3 per cent to 17.25 levels. The Nifty Pharma index has plunged more than 4 per cent experiencing major selling pressure.
The Nifty February month contract began the session on a positive note at 10,819. But, the contract started the decline, breaching the key supports at 10,750 and 10,700 levels. It has recorded an intra-day low at 10,641 levels. The near-term outlook is bearish for the contract.
Traders can consider initiating fresh short positions in intra-day rallies while maintaining a fixed stop-loss at 10,710 levels. Key supports are at 10,650 and 10,625. A strong fall below these supports can drag the contract down to 10,600 levels. Resistances to note are placed at 10,750 and 10,780 levels.
Strategy: Sell in rallies with a fixed stop-loss at 10,710
Supports: 10,650 and 10,625
Resistances: 10,725 and 10,750
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