Technical Analysis

Nifty Call: Buy in dips with stop-loss placed at 10,650 levels

Yoganand D, BL Research Bureau | Updated on February 20, 2019 Published on February 20, 2019

File Photo   -  Bloomberg

Nifty 50 February Futures (10,705)

Taking cues from the positive Asian markets, the Sensex and the Nifty began the session in the green, with a gap-up opening. The Nikkei 225 has climbed 128 points or 0.6 per cent to 21,431 and Hang Seng index has advanced 247 points or 0.88 per cent to 28,476 levels in today's session.

Both the Sensex and the Nifty have gained about 0.7 per cent each. The market breadth of the Nifty index is biased towards advances. The Nifty metal and PSU bank indices are witnessing buying interest and have surged 2 per cent and 1.4 per cent respectively.

The Nifty February month contract started the session with a gap-up open at 10,660. After an initial decline to the intra-day low to 10,649,  the contract resumed its up move. The near-term stance will remain bullish as long as the contract trades above 10,660 levels.

Traders can buy the contract in declines while maintaining a stop-loss at 10,650 levels. A decisive rally above 10,715 can take the contract higher to 10,730 and 10,750 levels. Next key resistances are at 10,775 and 10,800 levels. Key supports are placed at 10,625 and 10,600 levels.

Strategy: Buy in dips with a stop-loss placed at 10,650 levels

Supports: 10,625 and 10,600

Resistances: 10,730 and 10,750

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Published on February 20, 2019
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