Technical Analysis

Nifty Call: Sell on rallies with stop-loss at 15,335

Yoganand D | Updated on February 16, 2021 Published on February 16, 2021

Nifty 50 February Futures (15,270)

Taking cues from the positive Asian market, the Sensex and the Nifty 50 commenced the session with a gap-up open and continued to hover in the positive territory until recently. The Nikkei 225 has surged 1.3 per cent to 30,467, and Hang Seng index has jumped 1.9 per cent to 30,764 in today's session. After trading in the positive territory during the initial hours, the benchmark indices - the Sensex and the Nifty 50 have slipped into the negative territory now. The market breadth of the Nifty 50 is biased towards declines. On the other hand, the India VIX has gained 1.6 per cent to 21.8 levels. The Nifty mid and small-cap indices are trading almost flat, with a negative bias. Among the sectoral indices, the Nifty metal index is the top gainer that has jumped 3 per cent and Nifty PSU Bank is the next top gainer which has advanced 1 per cent. Selling interest is seen in the Nifty IT and media indices that have fallen 1.4 per cent and 0.9 per cent respectively.

The February month contract began the session with a gap-up open at 15,373 against the previous close of 15,332. After recording an intraday high of 15,430 the contract started the decline on the back of profit booking and selling interest at higher levels. The contract has fallen below the key base level of 15,300. As long as the contract trades below the key resistance level of 15,330 the near-term stance will remain negative. Traders can make use of intraday rallies to sell the contract while maintaining a stop-loss at 15,335 levels. A decisive fall below the immediate support level of 15,280 can pull the contract down to 15,250 and then to 15,230 levels. Next supports are at 15,200 and 15,175 levels. Resistances above 15,330 are placed at 15,370 and 15,400 levels.

Strategy: Sell on rallies while retaining a stop-loss at 15,335 levels

Supports: 15,280 and 15,250

Resistances: 15,330 and 15,370

BL Research Bureau

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Published on February 16, 2021
technical analysis
futures and options
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