A
high volatile week ended on a positive note. The Sensex closed about 100 points
higher while the Nifty tested the 7500 mark. Earlier, Asian markets traded with
caution as the European Central Bank (ECB) which eased aggressively in its
monetary policy meet on Thursday, warned that it is running out of room to cut
interest rates. The market borrowing calendar for the first half of next
fiscal would be decided on March 18. RBI and Finance Ministry will a call on
whether to front load the borrowing in such a manner that it is non-disruptive.
The government will announce Index of Industrial Production (IIP) data for
January on Friday.
The Sensex opened at 24620 touched an intra-day high of 24818 and low of 24553.
The Nifty closed with a gain of 24 points at 7510. The NSE Nifty opened at
7485 hitting a high of 7544 and low of 7461.
The
Nifty 50 futures contract is trading volatile. The contract failed to sustain
the break above 7500. It has reversed sharply lower below 7,500 from the
intraday high of 7544. The next important intra-day support is at 7435 which
can be tested. A reversal from there can take the contract lower to 7480 and 7500
once again. At the time of closing it again crossed 7500 & closed at 7510
level.
Wait for dips and go long on a reversal from 7495.
Stop-loss can be kept at 7445 for the target of 7570.
On the other hand, a strong break below 7430 can drag
the contract lower to 7400. Such a break will also increase the danger of the
contract falling below 7370 to 7340 or even lower levels thereafter.
Strategy: Go long
on a reversal from 7495 with a stop-loss at 7445.
More about intraday tips on Google +
Supports: 7400, 7370
Resistances: 7,570, 7,600
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