Technical Analysis

Nifty call: Buy on declines with fixed stop-loss at 10,720 levels

| Updated on February 19, 2019 Published on February 19, 2019

Nifty 50 February futures (10,745)

The Sensex and the Nifty began the session on a positive note and continue to trend upwards. The market breadth of the Nifty index is biased towards advances.

The India VIX has slipped almost 3 per cent to 17.47 levels. Both the mid and small-cap segments are witnessing buying interest, and have gained almost 1 per cent each.

The Nifty February month futures contract started the session in negative territory, opening at 10,651. After marking an intra-day low at 10,650, the contract started trending upwards and breached key resistances at 10,675 and 10,700 levels. The contract continues to trend upwards on the back of buying interest.

The near-term stance will remain positive as long as the contract trades above 10,700 levels. Traders can make use of intra-day dips to buy the contract, while maintaining a stop-loss at 10,720 levels. Immediate support is at 10,725. A strong rally above 10,755 can take the contract higher to 10,775 and then to 10,800 levels.

Strategy: Buy on declines while maintaining a fixed stop-loss at 10,720 levels

Supports: 10,725 and 10,700

Resistances: 10,755 and 10,775

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