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Nifty 50 March futures (11,245)
Taking cues from the bearish global markets, the Sensex and Nifty commenced the session on a flat note and slipped into negative territory. The US indices, Dow Jones, had plummeted 2.9 per cent to 25,917 and the S&P 500 dropped 2.8 per cent to 3,003 levels in the last session.
The Asian markets are flat with a negative bias, the Nikkei 225 is hovering at 21,100 and the Hang Seng index has slipped 0.14 per cent to 26,247 levels in today's session. Both the Sensex and the Nifty have declined 0.4 per cent each so far.
The market breadth of the Nifty index is biased towards declines. The India VIX has declined marginally by 0.8 per cent to 24.3 levels. The Nifty mid and small-cap indices have slumped 1.3 and 1.2 per cent respectively. Barring the Nifty IT and Pharma indices, which have advanced 0.4 per cent and 1.8 per cent respectively, other sectoral indices are trading in the negative territory.
The Nifty March month contract began the session on flat note, opening at 11,298 levels. After an initial rally to the intra-day high of 11,337, the contract started to decline due to selling pressure at higher levels and slipped below 11,300 levels.
The contract extended the down-move and found support at around 11,200 but recovered from this support and trades at 11,241 levels. The contract faces a key resistance at 11,250 and faces the next vital hurdle at 11,270. A strong rally above these resistances is needed to take the contract higher to 11,300 level.
A further rally above 11,300 can push the contract northwards to 11,330 and then to the 11,350 levels. Supports are at 11,225 and 11,200. An emphatic break below 11,200 can drag the contract down to 11,180 and 11,160 levels.
Strategy: Go long on a strong rally above 11,270 with a fixed stop-loss
Supports: 11,225 and 11,200
Resistances: 11,270 and 11,300
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