Nifty Call: Go long on rally above 10,510 levels

Nifty 50 March Futures (10,488)

Taking weak cues from the Asian markets, the Sensex and the Nifty started the session in the negative territory and entered the positive territory. The Nikkei 225 has tumbled 2.2 per cent to 19,416 levels and the Hang Seng index has dropped almost 1 per cent to 25,149 in today's session.

Following initial volatility, the Sensex and the Nifty have began to trend upwards, have advanced 1 per cent and 0.8 per cent respectively. The market breadth of the Nifty index is biased towards advances. The fear gauge, India VIX, has gained 4 per cent to 32 levels. The Nifty mid and small-cap indices are trading mixed. The Nifty media index is the top gainer which has advanced 1.9 per cent followed by Nifty PVT Bank index which has rallied 1.2 per cent. Selling interest is seen in the Nifty realty index which is down by 1.5 per cent.

The Nifty March month contract started the session with a gap-down open at 10,382. After marking an intra-day low at 10,335 the contract began to trend upwards and breached the key resistance at 10,450. But the contract failed to surpass the next key resistance at 10,510. A strong break above this level can take the contract higher to 10,530 and then to 10,550 levels.

Subsequent resistances are at 10,575 and 10,600. On the other hand, key supports below 10,450 are at 10,425 and 10,400 levels. Traders can consider taking long positions above 10,510 with a fixed stop-loss.

Strategy: Go long on a strong rally above 10,510 levels with a fixed stop-loss

Supports: 10,450 and 10,425

Resistances: 10,510 and 10,530

COMMENT NOW