Technical Analysis

Nifty call: Go long on strong rally above 12,175 levels with fixed stop-loss

Yoganand D | Updated on February 14, 2020 Published on February 14, 2020

Nifty 50 February Futures (12,167)

The Sensex and Nifty started the session with a gap-up open in today's session, amid mixed cues from the Asian markets. The Nikkei 225 has fallen 0.6 per cent to 23,687, whereas the Hang Seng index has advanced by 0.4 per cent to 27,828 levels.

Both the Sensex and the Nifty witnessed selling interest at higher levels and declined from the intra-day high. After recovering from the intra-day low, the key benchmark indices have declined about 0.16 per cent. The market breadth of the Nifty index is marginally biased towards declines.

The India VIX has climbed 1.3 per cent to 13.5 levels. The Nifty mid and small-cap indices are trading mixed, almost on flat note.

Among the sectoral indices, the Nifty PSU bank index, which has slumped almost 1 per cent, is the top loser, followed by the Nifty PVT Bank and Nifty Bank indices that have declined 0.9 per cent each. The Nifty media has advanced 0.3 per cent.

The Nifty February month contract began the session with a gap-up open at 12,198 levels. After rallying to an intra-day high of 12,260, the contract experienced selling pressure and commenced its decline. The contract breached a key support at 12,200 and recorded an intra-day low at 12,110. But it has bounced back from the intra-day and now trades on an almost flat note.

Traders can go long on a strong rally above 12,175 levels, with a fixed stop-loss. The contract can test resistance at 12,200. A strong rally above the barrier can take the contract higher to 12,230 and 12,250 levels. Key supports are placed at 12,150 and 12,125. A fall below the second support can drag the contract down to 12,110 and 12,100 levels. 

Strategy: Go long on a strong rally above 12,175 levels with a fixed stop-loss


Supports: 12,150 and 12,125

Resistances: 12,200 and 12,225


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Published on February 14, 2020
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