The Nifty call: Go short on declines below 10,175

Nifty 50 March Futures (10,204)

Although the Nifty and the Sensex commenced the session on a strong note with a gap-up open in positive territory, selling pressure at higher level has reduced the intra-day gains.

Both the benchmark indices are witnessing selling pressure at higher levels and have been trending down from the intra-day highs. The market breadth of the Nifty index is biased towards advances. Following a gap-up open at 10,188, the Nifty futures extended its rally backed by short-covering and it recorded an intra-day high at 10,265. However, after witnessing selling pressure at higher levels, the contract began to decline from the intra-day high and now tests key support at 10,200. The contract has another vital next support at 10,175. A decisive fall below this level will strengthen the down move and drag the contract down to 10,150 and then to 10,125 levels.

Next key supports are placed at 10,100 and 10,080 levels.

Traders can go short on declines below 10,175 levels with a stop-loss at 10,185. Key resistances are at 10,200 and 10,230. Subsequent resistances above 10,230 are at 10,250 and 10,265 levels.

Strategy : Go short on a decisive fall below 10,175 levels with a stop-loss at 10,185.

Supports : 10,175 and 10,150

Resistances : 10,225 and 10,250

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