Nifty 50 March Futures (14,840)
The Sensex and the Nifty 50 commenced the session with a gap-up open despite weak Asian markets. The Nikkei 225 has declined 0.8 per cent to 29,408 and the Hang Seng index has slumped 0.96 per cent to 29,170 levels in today's session.
Following an initial rally, both the Sensex and the Nifty gave up their intra-day gains and marginally touched negative territory. But the indices have recovered slightly from their intraday lows; the Sensex has climbed 0.24 per cent and the Nifty 0.35 per cent so far. The market breadth of the Nifty 50 is biased towards advances. The India VIX has plummeted 4 per cent to 24.5 levels. Both the Nifty mid and small-cap indices have advanced 0.9 per cent and 0.67 per cent respectively. Among the sectoral indices, the Nifty Auto and IT indices are the top gainers, which have jumped 2.2 per cent and 2 per cent respectively. Selling interest is seen in the Nifty Financial Service and Nifty Bank that have fallen about 0.5 per cent each.
The Nifty 50 March month contract started the session with a gap-up open at 14,845. After marking an intra-day high at 14,960 the contract began to decline, witnessing selling interest at higher levels. It has slipped below 14,900 levels and currently trades at around 14,820 levels. The key support at 14,800 is providing a base for the contract.
A strong fall below this base can pull the contract down to 14,775 and then to 14,750 levels. Next key supports are at 14,730 and 14,700 levels. Resistances are at 14,850 and 14,880 levels. A strong rally above 14,880 can take the contract higher to test the vital barrier at 14,900 levels. As long as the contract trades above 14,800 levels, traders should tread with caution. Fresh short positions can be initiated on a strong fall below 14,800 levels with a fixed stop-loss.
Strategy: Go short with a fixed stop-loss only if the contract declines below 14,800 levels
Supports: 14,800 and 14,775
Resistances: 14,850 and 14,880
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.