Nifty 50 March Futures (10,562)
Following a positive open taking cues from the bullish global markets, both the Nifty and Sensex began to decline, witnessing selling pressure in sectors such as PSU banks and Bank Nifty. Moreover, small and mid-cap stocks were also under pressure.
The India VIX is up 3.6 per cent at 14.18 levels. The Nifty and Sensex continue to move in the red with a negative bias. The market breadth of the Nifty index is biased to declines. After a positive start at 10,616, the Nifty futures contract recorded an intra-day high at 10,639. However, experiencing selling pressure, the contract began to decline and fell below the key support level of 10,600, which has turned into a key resistance now. The contract has recorded an intra-day low of 10,540.
Traders can make use of intra-day rallies to sell the contract, while maintaining a fixed stop-loss at 10,585 levels. The contract will test immediate support at 10,550. A strong decline below this level can drag the contract down to 10,530 and 10,505 levels. On the other hand, key resistances are at 10,600 and 10,625 levels. A decisive rally above 10,600 can alter the bearish view and take the contract higher to 10,625 and 10,650 levels.
Strategy: Make use of intra-day rallies to initiate short positions with stop-loss at 10,585
Supports: 10,550 and 10,530
Resistances: 10,600 and 10,625
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