Technical Analysis

Nifty Call: Buy on dips with stop-loss at 15,165 levels

Yoganand D | Updated on February 12, 2021

Nifty 50 February Futures (15,211)

The Sensex and the Nifty 50 commenced the session marginally on a positive note and turned choppy on initial hours. But thereafter the benchmark indices continued to trend upwards gradually and have climbed about 0.3 per cent. Backing the up-move the India VIX the volatility index has slumped 4 per cent to 22 levels implying decrease in volatility. However, the market breadth of the Nifty 50 index is biased towards the declines indicating only few stocks are holding the up-move. The Nifty mid-cap index is marginally up by 0.15 whereas the Nifty small-cap index has advanced 0.7 per cent in today's session. The Nifty PSU and PVT Bank indices have climbed 1.5 per cent and 1.3 per cent respectively experiencing buying interest. The Nifty Financial Service index is also up 1.2 per cent. On the other hand, selling interest is seen in the Nifty FMCG, metal and pharma that have fallen in the range of 0.7 to 1.1 per cent.

The Nifty February month contract began the session slightly in the negative territory, opening at 15,172 against the previous close of 15,184. After marking an intraday low at 15,155 the contract resumed the up-move and has surpassed the key level of 15,200. It has registered an intraday high at 15,236. Traders can make use of intraday dips to buy the contract while maintaining a stop-loss at 15,165 levels. Key supports at 15,190 and 15,170 can cushion the contract on dips. But a strong fall below 15,170 will mitigate the positive view and drag the contract down to 15,140 and then to 15,110 levels. Vital resistances above 15,235 are at 15,250 and 15,275 levels.

Strategy: Make use of intraday dips to buy the contract with a stop-loss at 15,165 levels

Supports: 15,170 and 15,140

Resistances: 15,235 and 15,250

BL Research Bureau

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 12, 2021
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.