The Sensex and the Nifty 50 started the session with a gap-down open and continued to trend downwards. The Asian markets are almost flat, the Nikkei is up 0.17 per cent to 29,766 levels and Hang Seng index is trading flat at 28,785 levels in today's session. The Sensex and the Nifty have tumbled 1.85 per cent each so far. The market breadth of the Nifty 50 is biased towards declines. The India VIX — the volatility index — has gained 4 per cent to 22.6 levels, indicating increase in volatility. Both the Nifty mid- and small-cap indices are down 2 per cent and 1.8 per cent respectively. All the sectoral indices are featuring in the negative territory. Top losers are Nifty PVT Bank and Nifty Bank; these have plummeted 3 per cent each.

The Nifty March month contract began the session on a flat note at 15,050 levels. After marking an intraday high at 15,068 the contract started to decline witnessing selling interest. It has breached the key support at 14,900 and 14,850 levels. The contract has recorded an intraday low at 14,771. Near-term stance is bearish. A fall below the immediate support level of 14,750 can pull the contract down to 14,725 and then to 14,700 levels. Vital base after 14,700 are placed at 14,670 and 14,650 levels. On the upside, a strong rally above 14,850 can witness a corrective upmove to 14,900 levels. Traders can sell the contract on rallies with a stop-loss at 14,850 levels.

Strategy: Sell on rallies with a fixed stop-loss at 14,850 levels

Supports: 14,750 and 14,725

Resistances: 14,850 and 14,900