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Last Updated : Feb 14, 2020 06:44 PM IST | Source: Moneycontrol.com

Technical View: Nifty forms bearish candle, consolidation likely to continue

The market remained in a consolidation phase in this week and may see ongoing optimism with a consolidative move towards 12,250 zones, experts say


On February 14, Nifty50 ended lower for the second consecutive day. Indices were volatile throughout the day but managed to recover some ground at the end of the session.

The index managed to close above 12,100 and formed a bearish candle on the daily scale, while it formed a doji candle on the weekly scale.

Close

The market remained in a consolidation phase in this week and may see ongoing optimism with a consolidative move towards 12,250 zones, experts say.

"The strength in Nifty is not expected unless it registers a strong close above 12,246 levels. Meanwhile, the ideal target on downside seems to be around 11,990 levels," said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

"For time being traders are advised to avoid long positions unless a strong close is witnessed above 12,250 levels whereas intraday traders can consider going short if Nifty trades below 12,091 levels for more than 30 minutes and look for a target of 11,990," he added.

On the options front, maximum Put open interest (OI) is at 12000 followed by 11800 strike while maximum Call OI is at 12500 followed by 12400 strike. Call writing is mainly seen at 12200 followed by 12300 strike while Put unwinding is seen at all the immediate strikes. Option data indicates an immediate trading range between 12000 to 12300 zones.

India VIX moved up by 1.83% at 13.61 levels.

Bank Nifty witnessed profit booking in the last two trading sessions as it failed to surpass the immediate hurdle of 31750 zones and corrected by around 900 points in the last two trading sessions.

"It formed a Bearish candle on daily as well as on the weekly scale and drifted below its 50 DEMA. It underperformed the Nifty index and got stuck in a broader trading range with a limited upside. Now it has to continue to hold above 30500 zones to witness an up move towards 31500 then 31750 zones while on the downside major support is seen at 30200 levels," said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

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First Published on Feb 14, 2020 05:12 pm
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