Nifty Call: Nifty 50 March Futures (14,629)

Yoganand D BL Research Bureau | Updated on March 22, 2021

Following a gap-down open, the Sensex and the Nifty 50 recovered their initial loss, but failed to sustain in the positive territory. The domestic benchmark indices continue to trend downwards witnessing selling interest.

The Asian markets are trading on a weak note — the Nikkei 225 has tumbled 2 per cent to 29,174 and the Hang Seng Index is down by 0.21 per cent to 28,930 levels. The Sensex and the Nifty 50 have declined about 0.95 per cent and 0.85 per cent, respectively.

The market breadth of the Nifty 50 is biased towards declines. The Nifty mid- and small-cap indices are mixed. While the former has advanced 0.3 per cent, the latter has declined 0.3 per cent. The India VIX has jumped 5 per cent to 21 levels, implying increase in volatility.

Among the sectoral indices, the Nifty Bank index has slumped 1.7 per cent on the back of selling interest seen in the Nifty PVT and PSU Bank indices that have declined 1.8 per cent and 1.4 per cent, respectively. The Nifty Pharma, FMCG, IT and Realty are the gainers that have advances 0.6-1.3 per cent.

The Nifty March month contract commenced the session on a negative note, opening at 14,741 against the previous close of 14,756. After marking an intraday high at 14,779, the contract started to decline, and has slipped below the key support level of 14,700. It has recorded an intraday low at 14,612. The next support at around 14,600 can provide base for the contract.

Traders should tread with caution as long as the contract trades above 14,600. But a decisive fall below this base can strengthen the selling pressure and drag the contract down to 14,570 and then to 14,550 levels. The supports below 14,550 are at 14,525 and 14,500 levels.

On the upside, a strong rally above the immediate intraday resistance level of 14,660 can take the contract higher to 14,700 and then to 14,740 levels. The resistances thereafter are at 14,775 and 14,800 levels.

Strategy: The contract trades above a key base level of 14,600. Tread with caution

Supports: 14,600 and 14,550

Resistances: 14,660 and 14,700

Published on March 22, 2021

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