Nifty Call: Go long on strong rally above 15,230

Nifty 50 March Futures (15,219) Taking negative cues from the Asian markets- -Sensex and Nifty 50 began the session with a gap-down open but started to recover from the intraday lows. The Nikkei 225 has tumbled 2.1 per cent to 28,903 and Hang Seng index has slumped 2 per cent to 29,267 levels in today's sessions. Recovering from the intraday lows the Sensex and the Nifty 50 have trimmed their intraday loss to 0.4 per cent and 0.35 per cent, respectively.

The market breadth of the Nifty 50 is at breakeven that is advances/decline ratio is at 25-25. There is an increase in volatility as the India VIX has jumped 5 per cent to 23.2 levels. Both the Nifty mid and small-cap indices are trading in the positive territory, advancing 0.7 per cent and 1.3 per cent respectively. The Nifty metal is the top loser that has slumped 1.3 per cent. Selling interest is seen in the Nifty financial service and Nifty Bank indices which have fallen 0.9 per cent and 0.36 per cent correspondingly. On the other hand, the Nifty media index has surged 2.5 per cent.

Following a gap-down open at 15,047, the Nifty March month contract began to recover after recording an intraday low at 14,992. The contract surpassed key resistances at 15,100 and 15,200 levels and marked an intraday high at 15,225. But it is unable to sustain above 15,200 and it tests this level. A strong rally above 15,230 can extend the rally higher to 15,250 and then to 15,275 levels. Next key resistance is at 15,300 levels. Supports below 15,175 are placed at 15,150 and 15,100 levels. Avoid taking fresh long positions on a fall below 15,150 levels.

Strategy: Go long on a strong rally above 15,230 levels with a fixed stop-loss

Supports: 15,175 and 15,150

Resistances: 15,230 and 15,250