Technical Analysis

Nifty trading range-bound, tread with caution

Yoganand D | Updated on February 10, 2021 Published on February 10, 2021

Nifty 50 February Futures (15,084)

Following a positive open, the Sensex and the Nifty 50 have immediately slipped into the negative territory. However, from the intraday low the benchmark indices have recovered and now trading on a flat note but lacks momentum to sustain. Among the Asian indices, the Nikkei 225 is up marginally by 0.2 per cent to 29,562 and Hang Seng index has gained 1.7 per cent to 29,978 levels. The Sensex and the Nifty 50 are down by 0.15 per cent each. The market breadth of the Nifty 50 is biased towards declines. The India VIX which measures the market volatility is up by 0.8 per cent to 24.4 levels. Both the Nifty mid and small-cap indices have advanced 0.4 per cent and 0.6 per cent respectively. Buying interest is seen in the Nifty realty index that has advanced 1.3 per cent, followed by Nifty auto and IT that have climbed 0.5 per cent each. While the selling interest is observed in the Nifty Bank and Nifty PVT Bank indices which have fallen 0.25 per cent each.

The February month contract started the session on a flat note, opening at 15,105 levels. After marking an intraday low at 15,006 the contract recovered and now tests resistance at 15,120 levels. A decisive rally above this level can take the contract higher to 15,150 and then to 15170 levels. But a fall below the immediate support level of 15,050 can bring back selling interest and pull the contract down to 15,020 and then to 15,000. Next key supports are placed at 14,975 and 14,950 levels. The contract is range-bound between 15,060 and 15,120. So, tread with caution as long as the contract remains in this range.

Strategy: The contract is range-bound, tread with caution

Supports: 15,060 and 15,020

Resistances: 15,120 and 15,150

BL Research Bureau

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Published on February 10, 2021
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