Technical Analysis

Nifty call: Sell on intra-day rallies with stop-loss at 14,380 levels

Yoganand D | Updated on March 25, 2021

Nifty 50 March futures (14,280)

Both the Sensex and the Nifty 50 started the session in negative territory and continued to trend downwards despite positive Asian markets. The Nikkei 225 has gained 1.14 per cent to 28,729 levels and the Hang Seng index is hovering in positive territory, climbing 0.2 per cent to 27,966 levels in today's session.

The Sensex and the Nifty 50 have tumbled more than 1.5 per cent each. The market breadth of the Nifty 50 is biased towards declines. The Nifty mid and small-cap indices have slumped 2.2 per cent and 2.5 per cent respectively on the back of selling interest. The India VIX has climbed 1.9 per cent to 22.8 levels. All the sectoral indices feature in negative territory. The top sectoral losers are the Nifty PSU Bank that has plummeted 4 per cent, followed by Nifty media, which has declined 3.4 per cent.

As the March month derivative contracts expire today, the contract started the session on a flat note, opening at 14,560 and began to decline. The contract breached key supports at 14,500 and 14,400 levels. As long as the contract trades below the key resistance level of 14,400, the near-term outlook will remain bearish. Traders can make use of intra-day rallies to sell the contract with a stop-loss at 14,380 levels. A decisive rally above 14,400 can lead to a corrective up-move to 14,450 and then to 14,500 levels. Key supports below 14,250 are at 14,250 and 14,230 levels. The next vital base is at 14,200 levels.

Strategy: Make use of intra-day rallies to sell the contract with a stop-loss at 14,380 levels

Supports: 14,250 and 14,230

Resistances: 14,370 and 14,400

Published on March 25, 2021

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