Technical Analysis

Nifty Call: Short on rallies with stop-loss at 15,020

Yoganand D | Updated on March 09, 2021

Nifty 50 March Futures (14,980)

Amid mixed cues from the Asian markets, the Sensex and the Nifty 50 began the session on a positive note, with a gap-up and continues to feature in the positive territory. The Nikkei 225 is up by 1 per cent to 29,027 levels while the Hang Seng index is hovering flat with a negative bias at around 28,535 levels in today's session. The Sensex and the Nifty 50 witnessing selling interest in the mid-session and have given away some of their initial gains and now up by 0.4 per cent and 0.3 per cent respectively. The market breadth of the Nifty 50 is biased towards declines.

The Nifty mid and small cap indices are down by 0.6 per cent each so far. The volatility index- India VIX has tumbled 5.5 per cent to 23.3 levels implying decrease in volatility. Among the sectoral indices, the top sectoral losers Nifty PSU Bank and metal that have fallen 1.3 per cent and 1.27 per cent respectively. The sectoral gainers Nifty financial services and Nifty Bank that have surged 1.7 per cent and 1.2 per cent correspondingly.

The Nifty futures contract of March month started the session with a gap-up, opening at 15,075 levels. After marking an intraday high at 15,148 the contract began to decline trimming its initial gains. The contract breached the key base level of 15,000 with a negative bias. This can bring back selling interest and pull the contract down to 14,975 and then to 14,950 levels. Supports thereafter are at 14,920 and 14,900 levels. On the upside, a rally above 15,060 level can take the contract higher to 15,100 and then to 15,130 levels. Traders can go short on a fall below 15,000 with a stop-loss at 15,015 levels.

Strategy: Initiate fresh short positions on rallies with a fixed stop-loss at 15,020

Supports: 14,970 and 14,950

Resistances: 15,060 and 15,100

BL Research Bureau

Published on March 09, 2021

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