Technical Analysis

Nifty call: Go long above 10,950

Yoganand D | Updated on March 06, 2020

Nifty 50 March futures (10,905)

Both the Sensex and the Nifty began the session with a large gap-down open, taking cues from the bearish global markets. The US indices had plummeted about 3.4 per cent in the last session. Asian markets followed the US stocks and tumbled. The Nikkei 225 slumped 2.7 per cent to 20,749 and the Hang Seng index declined 2.2 per cent to 26,157 levels in today's session.

Although the Sensex and the Nifty have recovered marginally from their intra-day lows, they continue to trade in the red, declining about 2.7 per cent each. The market breadth of the Nifty is biased towards declines. Conversely, the India VIX has jumped 11 per cent to 25.8 levels. The Nifty mid and small-cap indices have slumped more than 3 per cent each. All the sectroral indices are trading in negative territory. The Nifty PUS Bank is the top loser, which has slumped 4.9 per cent.

The Nifty March month contract commenced the session with a large gap-down open at 10,906. After an initial decline, the contract recorded an intra-day low at 10,830 and started to trend upwards. The contract has marked an intra-day high at 10,949. Key resistance at 10,950 is limiting the upside. Traders with a contrarian view can take long positions on a strong rally above 10,950 levels, with a fixed stop-loss. In that case, the contract can trend upwards to 11,000 and then to 11,050 levels. Key immediate supports are at 10,870 and 10,840.

Strategy: Go long above 10,950

Supports: 10,870 and 10,840

Resistances: 10,950 and 11,000

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on March 06, 2020
This article is closed for comments.
Please Email the Editor