Where is Nifty heading on Feb 13, 2020?
Nifty pulled off well, by bulls, today due to the strong global cues and buying from DIIs. The benchmark Nifty opened 43.10 points up at 12,151 maintaining bullish bias and touching the day’s high at 12,231.75. After early hours of trading, the market turned out to range bound and choppy closing at 12,201.20 with a net gain of 93.30 points making a bullish candle on the daily chart. Today also Nifty consolidated in the range as estimated in our previous analysis in the range of 12,000 to 12,200. On the weekly and monthly charts, Nifty made a bullish candle. Nifty has entered a new ascending channel now and it needs to be above 12,150 on closing basis for its northward journey for which it will need strong cues from domestic and international markets.
The DIIs were net buyers today with a turnover of 339.19Cr and also FIIs were net buyers with a turnover of 48.81Cr. A total of 33 stocks advanced and 16 declined and 1 remained unchanged from the stack of nifty 50 indicating a positive market breadth. The closing of Nifty at 12,201.20 is above the 50 DEMA at 12,060, the daily Pivot at 12,126 making a higher high and higher low. The daily stochastic remains close to the overbought zone while RSI is at 55 indicating the market may consolidate some more. The macro data such as WPI, CPI and IIP need to be watched out this week to find cues for the market.
Nifty’s new resistance levels are 12,232~48, 12,272, 12,297, and 12,329 while the support levels are at 12,172, 12,118, 12,100, and 12,086. Nifty has a new consolidation range now from 12,000 to 12,300. If Nifty slips below 12,118 level may head towards 11,990 and if it closes above 12,231 then it will continue its journey toward 12,430 The next day trading range from the chart seems to be from 12,118 to 12,329.
Bank Nifty also followed the broader market closing at 31,492.90 with a net gain of 192.30 making a bullish candle. New resistance levels are at 31,590, 31,692, 31,770 and 31,924 while as key support levels at 31,398, 31,300, 31,230 and 31,122. The Trading range for BN looks between 31,230 to 31,770. Bank Nifty PCR for the current OC series is at 1.36 which indicates a positive bias.
As per Option Chain data (13 Feb), Call writing was seen at 12,250 & 12,350 whereas new Put writing was observed at 12,100 to 12,300. Call unwinding was witnessed at 12,000 to 12,200 and Put unwinding at 11,800 to 12,000 levels shifting resistance and support to higher levels. Max OI in PE is at 12,200 and CE is at 12,300. The Call & Put range remains widened 11,900 to 12,400 which still indicates volatility on the expiry day. PCR for the current series is at 1.50, next series at 1.96 and the monthly expiry series is 1.29 with an overall bullish bias. OI data shows the possibility of the next trading range between 12,100 to 12,300.
Technical analysis with a sound understanding of the market is the key to trading success; however, unexpected (domestic or international) factors make the technical analysis go haywire for a while, hence we have to monitor fresh data and new dynamics of the market during trading hours to consistently make money. We trust the information will be helpful in your own analysis of the market and make trading a profitable and better experience. This analysis has been shared for educational purposes. Please seek your financial adviser’s guidance before trading or investing.
Happy Trading and Keep investing safely!
