Technical Analysis

Nifty Call: Buy on decline with fixed stop-loss at 15,060 levels

Yoganand D | Updated on February 08, 2021

Nifty 50 February Futures (15,119)

The Japanese benchmark index - Nikkei 225 has jumped 2.12 per cent to 29,388 in today's session, and the Hang Seng index is marginally up by 0.26 per cent to 29,365.7. Also, the CSI 300 index has gained 1.4 per cent to 5,560.8 levels. Tracking the bullish Asian markets, the Sensex and the Nifty 50 index had commenced the session with a gap-up open, surpassing key barriers at 51,000 and 15,000 respectively. Both the indices have gained about 1.1 per cent so far on buying interest. The market breadth of the Nifty 50 is biased towards advances. Meanwhile, the India VIX- volatility index has gained 3.26 per cent to 24.1 levels indicating an increase in market volatility. The Nifty mid and smallcap indices have advanced 1.4 per cent and 1.6 per cent respectively.

The February month Nifty index futures contract started the session with a gap-up opening at 15,068 against the previous close at 14,930 levels. After marking an intraday low of 15,031 the contract resumed the rally and has exceeded the 15,100 levels. The near-term outlook stays positive as long as the contract trades above a key support level of 15,070. Traders can buy on dips with a fixed stop-loss at 15,060 levels. The contract can test resistance at 15,145. A rally beyond this level can take the contract northwards to 15,175 and then to 15,200 levels. Key supports to note are placed at 15,030 and 15,000. A fall below the vital base level of 15,000 can lead to profit-booking that can drag the contract lower to 14,950 and then to 14,930 levels. In that case, traders should avoid taking new long positions.

Strategy: Buy on decline with a fixed stop-loss at 15,060 levels

Supports: 15,070 and 15,030

Resistances: 15,145 and 15,175

BL Research Bureau

Published on February 08, 2021

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