Nifty call: Use intra-day rallies to sell contract with stop-loss at 10,305 levels

Nifty 50 March Futures (10,277)

Taking cues from the bearish Asian markets and bellwether indices, the Nifty as well as Sensex started the session in negative territory. The Nikkei 225 is down 0.6 per cent at 21,676 and the Hang Seng index has slipped 0.35 per cent to 31,429. Moreover, selling pressure is being witnessed in FMCG, metal and pharma stocks.

The sectoral indices are down and there are triggers for a further sell-off in the Nifty and Sensex. The market breadth of the Nifty index is biased towards declines. On the other hand, the India VIX volatility index has gained 4.5 per cent.

The Nifty futures contract began the session with a gap-down, opening at 10,344, and continued to trend downwards. The contract breached its key support at 10,300 and recorded an intra-day low at 10,272. It is witnessing selling pressure at higher levels. Hence, traders with a short-term perspective can make use of rallies to sell the contract, with a stop-loss at 10,305 levels.

Immediate resistances are at 10,325 and 10,345 levels. Subsequent resistances are at 10,375 and 10,400. On the downside, an emphatic slump below the immediate support level of 10,275 can pull the contract down to 10,250 and 10,225 levels. The next key support is at 10,200.

Strategy: Make use of intra-day rallies to sell the contract with a stop-loss at 10,305 levels

Supports: 10,275 and 10,250

Resistances: 10,300 and 10,325

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