Despite major indices across Asia declining, the Indian benchmarks are gaining today. The Nifty spot and the Sensex spot indices are trading higher by over 4 per cent. Comparatively, the Asian indices like the Nikkei, the Shanghai composite and the Hang Seng index are down by 4.4 per cent, 0.3 per cent and 0.7 per cent respectively.

At 41-9, the market breadth of the Nifty 50 index is inclined to the upside. All the mid-cap and small-cap indices are up by over 3 per cent each. Moreover, all the sectoral indices have gained today, indicating a broad-based buying. The Nifty PVT bank index is the top performer, up by 11 per cent followed by the Nifty financial services index, up by 8.1 per cent. The volatility index has come down, hinting easing market sentiment.

The March futures contract of the Nifty index opened marginally higher at 8,389 versus yesterday’s close of 8,362. After an initial blip, the contract started to rally. It marked an intraday high of 8,750 but has now moderated to 8,650. Though the trend has been bullish since morning, the contract is facing a resistance at 8,670 – the 23.6 per cent Fibonacci retracement level of the previous downtrend. Also, 8,750 is a considerable resistance. Thus, the price band between 8,670 and 8,750 will act as a resistance band. Hence, traders can initiate fresh long positions if the contract breaks out of the resistance band.

Strategy: Buy with stop-loss at 8,650 if the contract moves above 8,750

Supports: 8,600 and 8,500

Resistances: 8,750 and 8,900

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