Nifty Call: Sell on rallies with fixed stop-loss at 9,020 levels

Nifty 50 April Futures (8,925)

Tracking the bearish global markets, the Sensex and the Nifty began the session with a gap-down open and continued to trend downwards. The Nikkei 225 has slumped almost 2 per cent to 19,280 levels, and Hang Seng index has also tumbled 2 per cent to 23,848 levels. The domestic bellwether indices have plunged over 3 per cent so far. The market breadth of the Nifty index is biased towards declines.

The Volatility index, India VIX has jumped 4.2 per cent to 45.2 levels. Both the Nifty mid and small-cap indices have fallen 3.7 per cent and 3.8 per cent respectively. Barring the Nifty pharma index which has gained 3 per cent all the other sectoral indices are hovering in the negative territory. The Nifty PVT Bank and Nifty Auto are the top losers that have plummeted 5.7 per cent and 5.5 per cent respectively.

The Nifty April month contract commenced the session with a gap-down open at 9,031 and continued to trend downwards after marking an intra-day high at 9,066 levels. The contract breached key support at 9,000 and has registered an intra-day low at 8,912 levels. The near-term stance is bearish as long as the contract trades below 9,000 levels. Traders can make use of intra-day rallies and sell the contract while maintaining a stop-loss at 9,020 levels. The contract can retest 8,934 levels. A fall below this level can test support at 8,900. Subsequent supports are at 8,850 and 8,800 levels. On the upside, critical resistances above 9,000 are at 9,065 and 9,100 levels.

Strategy : Sell on rallies with a fixed stop-loss at 9,020 levels

Supports : 8,900 and 8,850

Resistances : 9,000 and 9,065

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