17 March 2016


The Nifty futures contract started the session with a gap-up open at 7588. After encountering a key resistance 7601, the contract declined to mark an intra-day low of 7553.  The  Sensex wiped off all its gains to end in red on Thursday, while broader Nifty managed to hold above its key 7,500-mark post US Federal Reserve's two-day policy meeting that concluded on Wednesday. At their intraday high, both indexes had risen the most also since March 3. Finally Sensex ended with a loss of mere five points at 24677. The Sensex opened at 24852 touched an intra-day high of 24948 and low of 24576. The NSE Nifty closed at 7513 up 14 points. The NSE Nifty opened at 7557 hitting a high of 7585 and low of 7479.
Significant support around 7540 can provide base for the contract in declines. Traders with a short-term view can make use of dips to buy the contract while maintaining a stop-loss at 7540 levels. Partial profits can be booked at the resistance level of 7590. An emphatic break through 7610 can strengthen the bullish momentum and take the contract higher to 7640 and then to 7670 levels. But a fall below the immediate support at 7540 can drag the contract down to 7,520 and 7,500 levels.
Strategy: Use dips to buy the contract with stop-loss at 7540 levels
Supports: 7540 and 7510
Resistances: 7610 and 7640

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