Technical Analysis

Nifty Call: Go shot on fall below 12,080 levels with a stop-loss

Yoganand D, BL Research Bureau | Updated on February 07, 2020 Published on February 07, 2020

Nifty 50 February Futures (12,098)

Taking weak cues from the Asian markets, the Nifty and Sensex started the session in negative territory and continued to trend downwards. The Nikkei 225 has declined 45 points or 0.19 per cent to 23,827 and Hang Seng index has fallen 149 points or 0.5 per cent to 27,344 levels in today's session.

The Nifty and Sensex has slightly recovered from their intra-day low but still remain in the negative territory. However, the market breadth of the Nifty is biased towards advances. The India VIX has fallen marginally by 0.27 per cent to 13.7 levels. The Nifty mid and small-cap indices have slightly gained by 0.17 per cent and 0.18 per cent respectively. The top gainers among the sectoral indices are Nifty media and pharma which have advanced about 1.1 per cent each. While the selling pressure is seen in the Nifty realty sector has tumbled 1.5 per cent.

The Nifty February month contract commenced the session almost on a flat note, opening at 12,132 levels. Subsequently, the contact began the decline on the back of selling interest and profit taking ahead to the weekend. Nevertheless, the contract has slightly recovered from the intra-day low of 12,068 and currently tests key resistance at 12,100 levels.

A strong rally above 12,125 is needed to bring back bullish momentum and take the contract higher to 12,150 and then to 12,175 levels. Next key resistance is at 12,200. On the other hand, a fall below the immediate support level of 12,080 can drag the contract down to 12,065 and 12,050 levels. A further decline below 12,050 can pull the contract lower to 12,025 and 12,000 levels. Traders can take fresh short positions on a fall below 12,080 levels with a fixed stop-loss.

Strategy: Go shot on fall below 12,080 levels with a stop-loss

Supports: 12,080 and 12,065

Resistances: 12,125 and 12,150

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Published on February 07, 2020
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