Today also another day of consolidation and range bound session. Market is in mood to show direction as its waiting for UP elections outcome. As market data shows market is not seeing any negative outcome, but FII’s Sold 617 crores Index futures and Sold 1224 crores in Index Options. FII’s increased their short positions by 7% compared to 1.5% decrease in their long positions. Any negative surprise on Saturday will take the market much lower to 8700.
Nifty Spot: 8927.00 (2.70)
Nifty Futures: 8954.50 (2.30)
Support: 8860, 8820
Resistance: 8980, 9020
Technical Chart Pattern: Spinning Top
Events to watch: UP Election Results on 11-Mar-2017 and FOMC Meeting outcome on 15-Mar-2017
Strategy: Wait for theconfirmation to go short (i.e. below 8860 levels) and long(i.e. above 9000 levels).
Follow up: Aggressive traders who have short positions created at 8940 levels on 27-Feb-2017 can continue to hold their positions with a stop above 9020 spot levels for target of 8800. But can be risky to hold the positions as there is long weekend and big event. Also high risk traders should carry the position.