Nifty call: Sell on fall below 14,700-level with a fixed stop-loss

Nifty 50 April Futures (14,750)

The Sensex and the Nifty 50 commenced the session on a flat note and then started to trend upwards despite the weak Asian market. The Japanese index- Nikkei 225 has slumped 1.3 per cent to 29,696 levels. The Sensex and the Nifty 50 have climbed 0.3 per cent and 0.2 per cent, respectively. The market breadth of the Nifty 50 is biased towards advances. India VIX - volatility index has fallen 1.2 per cent to 20.9 levels. The Nifty mid- and small-cap indices have advanced 0.7 per cent and 1 per cent, respectively. Top sectoral gainers are the Nifty metal and pharma indices that have advanced 1.5 per cent and 1.2 per cent correspondingly. Selling interest is seen in the Nifty media.

The Nifty April contract commenced the session with a gap-up open at 14,750 against the previous close of 14,698 levels. Following the initial rally, the contract marked an intraday high at 14,849 and started to decline. It is now hovering above the key base level of 14,700. The contract is witnessing selling interest at higher levels, and a fall below the base level of 14,700 can pull the contract down to 14,650 and then to 14,620 levels. Traders can sell the contract on a fall below 14,700 with a fixed stop-loss. Key resistances above 14,750 are placed at 14800 and 14850.

Strategy: Sell on fall below 14,700-level with a fixed stop-loss

Supports: 14,700 and 14,650

Resistances: 14,800 and 14,850

BL Research Bureau