Technical Analysis

Nifty call: Buy on declines with stop-loss at 12,220 levels

Yoganand D | Updated on January 24, 2020 Published on January 24, 2020

Nifty 50 January futures (12,252)

Following an initial slip into negative territory, the Sensex and Nifty bounced back and are hovering in positive territory.

Asian stocks are flat; the Nikkei 225 is trading little changed at 23,827 levels, gaining marginally by 31 points in today's session. The domestic equity markets, the Sensex and the Nifty, have advanced 0.3 per cent and 0.4 per cent, respectively. The market breadth of the Nifty index is biased towards advances.

In contrast, the India VIX has slumped almost 2 per cent to 15.5 levels. Both the Nifty mid and small-cap indices have surged 1.1 per cent and 0.85 per cent, respectively.

Witnessing selling interest only, the Nifty IT index is hovering in the red, down by 0.3 per cent. The Nifty media and metal indices have gained 1.6 per cent and 1.2 per cent correspondingly.

The Nifty January month index futures began the session on a flat note at 12,204. After marking an intra-day low at 12,157, the contract bounced back into positive territory, breaching the key resistance at 12,200. It has registered an intra-day high at 12,260 levels.

The near-term outlook remains bullish as long as the contract trades above 12,200. Traders can buy on declines, with a stop-loss at 12,220. Immediate supports are at 12,225 and 12,200. Resistances are at 12,275 and 12,300. Only a strong plunge below 12,200 will being back selling interest and drag the contract down to 12,170 and 12,150 levels.

Strategy: Buy on declines with a stop-loss at 12,220 levels

Supports: 12,225 and 12,200

Resistances: 12,275and 12,300

 

Published on January 24, 2020
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