Nifty Call: Sell on rallies, stop-loss at 9,300

Nifty 50 April Futures (9,265)

The Sensex and the Nifty began the session marginally in the positive note and started to decline witnessing selling pressure at higher levels. The Nikkei 225 has slumped 1.15 per cent to 19,669 levels and Hang Seng index is trading flat at 24,349 levels in today's session. Currently, the domestic benchmark indices are wavering between positive and negative territory. The market breadth of the Nifty index is biased towards declines. The India VIX has gained 2.2 per cent to 43.5 levels. While the benchmark mark indices are trading flat, the Nifty mid and smallcap indices have gained 0.9 per cent and 0.6 per cent respectively. Selling pressure in seen in the Nifty Metal, FMCG and Auto sector indices that have slumped in the range of 1-2 per cent. The Nifty PSU Bank index has jumped 3.9 per cent, followed by Nifty IT which has surged 2 per cent.

The Nifty April month contract started the session marginally in the positive note, opening at 9,332 levels. After an initial rally to the intra-day high of 9,384 the contract began to decline. It has breached a key support at 9,300 and recorded an intra-day low at 9,215 levels. As long as the contract trades below 9,300 the near term outlook remains bearish. The contract can decline to test support an immediate support at 9,250 and then 9,200. A fall below 9,200 can pull the contract down to 9,150 and then to 9,100 levels. On the other hand, a strong break above 9,300 can take the contract higher to 9,350 and 9,380 levels. Subsequent resistances are at 9,400 and 9,430 levels.

Strategy : Sell on rallies while maintaining a stop-loss at 9,300 levels

Supports: 9,250 and 9,200

Resistances : 9,300 and 9,350

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