The Nifty call: Make use of intra-day rallies to sell the contract

Nifty 50 March Futures (10,126)

Following a negative open, the Nifty as well as the Sensex bounced into positive territory. The Asian markets are showing mixed signals and have rebounded from their intra-day lows. The Nikkei 22 is down by 0.47 per cent to 21,380 while Hang Seng index has recovered from initial loss and has entered into positive territory by inching up 28 points to 31,542 levels.

Although the domestic benchmark indices gained ground they lacked bullish momentum to sustain the initial gains. The indices are witnessing selling pressure at higher levels. The Nifty futures started the session in a negative note at 10,094 and marked an intra-day low at 10,078 levels.

However, the contract bounced back from this low and entered the positive territory. While trending up, the contract surpassed its near-term resistances at 10,100 and 10,150 levels. But, after recording an intra-day high at 10,185 the contract began to experience selling pressure and commenced to decline. Hence, traders with a short-term perspective should tread with caution and initiate short positions in intra-day rally with a stop-loss at 10,160 levels.

The contract can decline and test supports at 10,100 and 10,080. Further decline below 10,080 can pull the contract down to 10,050 and 10,025 levels. On there other hand, key resistances are placed at 10,150 and 10,185 levels. Subsequent resistance above 10,185 are at 10,200 and 10,230 levels.

Strategy : Make use of intra-day rallies to sell the contract with a stop-loss at 10,160 levels

Supports : 10,100 and 10,080

Resistances : 10,150 and 10,185

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