Nifty Call: Go short on a strong fall below 15,000

| Updated on March 05, 2021

Nifty 50 March Futures (15,033) The Sensex and Nifty 50 started the session with a gap-down open and continues to trade in the negative territory. Last session the US key indices Dow Jones and S&P 500 declined 1.3 per cent and 1.1 per cent respectively on the back of selling interest. Asian markets are weak and marginally hovering in the negative territory, the Nikkei 225 is down by 0.23 per cent to 28,864 and Hang Seng index is almost hovering flat at 29,211 levels in today's session. The Sensex and the Nifty 50 are down by 0.3 per cent and 0.5 per cent respectively. The market breadth of the nifty 50 is biased towards declines. The India VIX- volatility index has jumped 6 per cent to 25 levels implying increase in volatility. The Nifty mid and small-cap indices have fallen 1.3 per cent and 0.8 per cent correspondingly. Among the sectoral indices, only Nifty FMCG and media are hovering slightly in the positive territory whereas other sectoral indices are in red. Nifty PSU Bank index has slumped 3.3 per cent followed by Nifty metal index that has declined 2.2 per cent.

The Nifty March month contract started the session in negative territory, opening at 14,970 against the previous close of 15,106. After marking an intraday high of 15,098 the contract began to decline witnessing selling interest. Key resistance at 15,100 is limiting the upside. Resistances above 15,100 are placed at 15,130 and 15,170 levels. Currently the contract trades at around 15,033. A fall below 15,000 can bring back selling interest and pull the contract down to 14,970 and then to 14,940 levels. Next key support is at 14,900 and 14,880 levels. Traders can go short on a fall below 15,000 with a fixed stop-loss.

Strategy: Go short on a strong fall below 15,000 levels with a fixed stop-loss

Supports: 15,000 and 14,970

Resistances: 15,100 and 15,130

BL Research Bureau

Published on March 05, 2021

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