Nifty 50 March futures (10,941)

The Asian markets began the session on a negative note following the decline in the US markets. The Dow Jones had slipped by 0.8 per cent to 25,819, and the S&P 500 had fallen 0.4 per cent to 2,792 in the previous session. The Nikkei 225 and the Hang Seng index began today's session in the negative zone, but subsequently showed signs of recovery.

After a negative start, the domestic indices - the Sensex and the Nifty - have moved into positive territory. The market breadth of the Nifty index is biased towards advances. The India VIX has slumped 2.6 per cent to 15.85 levels. Strong buying interest is seen in the Nifty Smallcap and Midcap indices that have advanced 3 per cent and 1.8 per cent respectively.

The Nifty March month contract began the session with a gap-down opening at 10,859. Following a dip to the intra-day low of 10,843, the contract bounced back strongly, recovering its initial losses. The contract has recorded an intra-day high at 10,945. The near-term outlook will remain bullish as long as the contract trades above 10,900 levels.

Traders can make use of dips to buy the contract, with a fixed stop-loss at 10,890 levels. A strong rally above 10,950 will strengthen the up-move and take the contract higher to 10,975 and then to 10,990 levels. Key supports below 10,900 are at 10,870 and 10,840 levels.

Strategy: Buy on declines while maintaining a fixed stop-loss at 10,890.

Supports: 10,900 and 10,870

Resistances: 10,950 and 10,975

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