Nifty 50 February Futures (11,920)
The Indian benchmarks are recovering sharply, after witnessing a huge fall on Budget day. Both the Nifty spot index and the Sensex spot index are up by around 2 per cent each. The major Asian indices, too, are showing positive cues. The Nikkei index gained 0.4 per cent today, whereas the Hang Seng index is up by nearly 1 per cent.
The market breadth of the Nifty 50 index shows substantial bullish sentiment, as 46 of the 50 stocks are in the green. The mid-cap and the small-cap indices, too, have been rallying since the beginning of the session.
All the sectoral indices have posted gains so far today, led by the Nifty metal index, which is up 2.6 per cent, followed by the Nifty financial services index, which is up by 2.4 per cent.
There has been a significant drop in volatility in today’s session. The volatility index, India VIX, is down by over 6 per cent at 14.75 levels.
The February futures of the Nifty index opened the session on a strong note at 11,761, against its previous close of 11,703. The contract has been gaining since the session opened and is currently hovering around 11,920. It has an immediate resistance at 11,928 – the 38.2 per cent Fibonacci retracement level of the previous bear trend. Hence, though the uptrend is strong, it is recommended that market players wait until the contract breaches 11,928 on the upside, before initiating fresh long positions. Stop-loss can be at 11,890.
Strategy: Go long above 11,928, with stop-loss at 11,890
Supports: 11,900 and 11,850
Resistances: 11,968 and 12,020
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.