Technical Analysis

Nifty call: Go long on dips with stop-loss at 12,160

Akhil Nallamuthu | Updated on February 12, 2020 Published on February 12, 2020

Nifty 50 February Futures (12,210)

Following positive cues from the Asian markets, the Indian benchmarks have gained so far today. While the Nifty spot index is up by 0.7 per cent, the Sensex spot index is up by 0.8 per cent. Among the major Asian indices, the Nikkei gained 0.75 per cent and the Hang Seng is up by nearly one per cent.

The advances-declines ratio of the Nifty 50 index, at 34-16, indicates a bullish bias. However, the mid-cap and small-cap indices are trading lower today. This shows that only frontline stocks are witnessing buying interest in today’s session.

Among the sectoral indices, the Nifty FMCG index is the top gainer, up by nearly 2 per cent, whereas the Nifty PSU bank index is the top loser, down by 1.5 per cent. On the other hand, volatility has seen a dip today as indicated by India VIX – the volatility index. It is down by 2.6 per cent at 13.52 levels.

The February futures contract of the Nifty index opened higher at 12,169 versus its previous close of 12,126. It then rallied and moved past the resistance at 12,200 and is currently trading at 12,210. The intra-day trend seems to be bullish and further strengthening looks highly likely. Traders can initiate fresh long positions on dips, with a stop-loss at 12,160

Strategy: Initiate long positions on dips with a stop-loss at 12,160

Supports: 12,200 and 12,160

Resistances: 12,245 and 12,275

 

 

Published on February 12, 2020
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