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Nifty 50 February Futures (10,454)
Benchmark indices, the Nifty and Sensex, started the session with a gap-down open, taking cues from the global markets. US indices, the Dow and S&P 500, plunged 4 per cent in the last session.
Nikkei 225 tumbled 2.3 per cent to 21,383 level and Hang Seng index slumped 3 per cent to 29,512 levels.
Nifty February contract began the session with a large down open at 10,378 levels. After registering an intra-day low of 10,375, the contract started to recover. It breached the immediate resistances at 10,400 and 10,450.
However, the contract encountered resistance at 10,479 and changed direction. The contract is experiencing selling pressure at higher levels. The market breadth is biased towards declines.
Traders can make use of rallies to sell the contract while maintaining a fixed stop-loss at 10,475. The contract can decline and test supports at 10,430 and 10,400 levels.
Further decline below 10,400 can drag the contract down to 10,375 and 10,350 levels. Key resistances to note above 10,480 are at 10,500 and 10,525 levels.
Strategy : Sell in rallies while maintaining a stop-loss at 10,475 levels.
Supports : 10,430 and 10,400
Resistances : 10,480 and 10500
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