Nifty Call: Buy in dips with a stop-loss at 10,245

Nifty 50 March Futures (10,275)

The Nifty and the Sensex started the session on a positive note, taking cues from the bullish global markets. The US markets advanced 0.4 per cent last session and Asian stocks traded in the positive note - Nikkei 225 was up 0.5 per cent at 21,469 levels and Hang Seng index added 0.9 per cent to 30,923 levels.

After a gap-up open at 10,270, the Nifty March month contract slipped initially and marked an intra-day low at 10,224. However, taking support from this low the contract began to recover and extended its upmove to record an intra-day high at 10,300 levels.

Market breadth of the Nifty index is biased towards advances. The near-term outlook for the contract remains positive as long as it trades above the key immediate support level of 10,250.

Traders can buy the contract in dips with a stop-loss at 10,245. The contract can retest the resistance at 10,300. A decisive breakthrough of this barrier will strength the bullish momentum and can take the contract higher to 10,330 and 10,350 in the near term.

On the other hand, if the contract declines below 10,250, it can bring back selling pressure and pull the contract down to 10,225 and 10,200 levels.

Strategy: Buy in dips with a stop-loss at 10,245

Supports: 10,250 and 10,225

Resistances: 10,300 and 10,330

 

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