Technical Analysis

Nifty Call: The contract is range-bound; Tread with caution

Yoganand D | Updated on March 13, 2019 Published on March 13, 2019

Nifty 50 March Futures (11,327)

The domestic equity indices — the Sensex and the Nifty — began the session on a flat note, taking negative cues from the Asian markets. The Nikkei 225 has declined 213 points or 1 per cent to 21,290 levels and Hang Seng index has dropped 139 points or 0.5 per cent to 28,781 in today's session.

Both the Sensex and the Nifty witnessing volatility and subsequently started to move sideways in a narrow range. The market breadth of the Nifty index is biased towards declines. The Nifty March month contract began the session with a gap-down open at 11,202 and bounced back strongly.

The contract has marked an intra-day high at 11,363. It contract trade sideways in a narrow range between 11,320 and 11,340. As long as the contract trades in the band traders should tread with caution.

A strong rally above 11,340 will strengthen the bullish momentum and take the contract higher to 11,365 and then to 11,380. A further rally above 11,380 can take the contract higher to 11,400 levels. On the down side, a decisive fall below 11,320 can pull the contract down to 11,300.

A conclusive decline below 11,300 can drag the contract down to 11,275 and 11,250 levels.

Strategy: The contract is range-bound. Tread with caution.

Supports: 11,255 and 11,225

Resistances: 11,325 and 11,350

 

BL Research Bureau

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