Technical Analysis

Nifty call: Go long on rally above 12,000

Yoganand D, BL Research Bureau | Updated on February 05, 2020 Published on February 05, 2020

Nifty 50 February Futures (11,975)

The Sensex and the Nifty started the session marginally in the negative territory and immediately bounced back into positive territory. Japan's Nikkei 225 Index is trading at 23319, up 1 per cent while the Hang Seng index is at 26,707, up marginally by 0.12 per cent in today's session.

Following an initial rally, the domestic benchmark indices have begun to decline from the intra-day high on the back of profit booking and selling interest at higher levels. The Sensex and the Nifty are trading flat now. The market breath of the Nifty is slightly biased towards advances.

The India VIX is up by 0.5 per cent to 14.4 levels. The Nifty mid and small-cap indices have advanced 0.8 per cent and 0.7 per cent respectively. The Nifty realty sector index is the top gainer which has jumped 1.8 per cent. On the other hand, Nifty media has slumped 1.2 per cent.

The February month index futures commenced the session on a flat note, opening at 11,963 levels. After an initial fall the contract marked an intra-day low at 11,942 but the contract rebounded into the positive territory. The contract marked an intra-day high at 12,027 levels. It now faces immediate resistance at 12,000.

A strong rally above this level can bring back bullish momentum and take the contract higher to 12,027 and then to 12,050. Next resistances are at 12,075 and 12,100. Conversely, the contract has a key base at 11,950. A decisive fall below this base can pull the contract down to 11,925 and then to 11,900 levels.

Strategy: Go long on a strong rally above 12,000 with a stop-loss at 11,985 levels

Supports: 11,950 and 11,925

Resistances: 12,000 and 12,025

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Published on February 05, 2020
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