BL Research Bureau

Both the Sensex and the Nifty 50 commenced the session with a gap-up open, taking positive cues from the Asian markets. The Nikkei 225 has advanced 1 per cent to 30,216 and Hang Seng index has jumped 1.5 per cent to 29,491 levels in today's session. Following a positive start, the Sensex and the Nifty 50 have started the decline witnessing selling interest at higher levels. The benchmark indices have given away their intraday gains and have entered the negative territory recently. However, the market breadth of the Nifty 50 is biased towards advances. The India VIX has fallen 3.5 per cent to 19.44 levels implying decrease in volatility. The Nifty mid and small-cap indices are marginally hovering in the negative territory, down by 0.2 per cent and 0.37 per cent respectively. The top sectoral gainers are Nifty media and metal that have advanced 1.26 per cent and 1 per cent respectively. On the other hand, the Nifty IT and pharma have slumped 1.3 per cent and 1.1 per cent correspondingly.

The Nifty March month contract started the session on a positive note at 14,868 but began to experience selling interest at higher levels after encountering resistance at 14,900. The contract has declined below the key support level of 14,800 and continues to trend downwards. The near-term outlook is bearish. Sell the contract on rallies while maintaining a stop-loss at 14,760 levels. The contract is likely to decline to 14,650 and then to 14,630 levels. Next key support is at 14,600. Resistances above 14,800 are at 14,840 and 14,880 levels.

Strategy : Sell the contract on rallies while maintaining a stop-loss at 14,740 levels

Supports : 14,650 and 14,600

Resistances : 14,760 and 14,800

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