The domestic equity benchmark indices- the Sensex and the Nifty commenced the session with a gap-up open and gradually declined during the initial hours of the trade.

However, the indices have begun to recover from their intraday low. The Sensex and the Nifty 50 have climbed 0.46 per cent and 0.39 respectively.

Asian Markets

The Asian markets were almost flat, the Nikkei 225 is hovering at 29,036 and Hang Seng index is marginally up by 0.3 per cent to 28,869 levels in today's session. On the domestic front, the Nifty 50 has climbed 0.39 per cent and the market breadth of the index is biased towards advances.

The India-VIX have slumped 5.4 per cent to 21.28 levels indicating decrease in volatility. The Nifty mid and small-cap indices have gained 0.5 per cent and 0.8 per cent respectively. All the sectoral indices are trading in the positive territory and the top gainers are Nifty IT and pharma that have surged 1.7 per cent and 1 per cent correspondingly.

The Nifty March month contract had begun the session with a gap-up open at 15,251 levels. After recording an intraday high at 15,262 the contract began to decline and has slipped below 15,200 levels to mark an intraday low at 15,131 levels. However, the contract has recovered from the intraday low and it faces resistance at 15,200 levels.

Storng rally

A strong rally above 15,200 can take the contract higher to 15,225 and then to 15,260 levels. Traders can go long on a strong rally above 15,200 levels with a fixed stop-loss. But, a strong fall below the immediate support level of 15,160 can pull the contract down to 15,135. Next key supports are at 15,100 and then at 15060 levels.

Strategy: go long on a strong rally above 15,200 levels with a fixed stop-loss

Supports: 15,160 and 15,135

Resistances: 15,200 and 15,225

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