NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 24 FEB TO 28 FEB 2020

WEEKLY RESISTANCE FOR NIFTY: 12150, 12250,12350

 PIVOT POINT: 12050

WEEKLY SUPPORT FOR NIFTY:  12000, 11900, 11800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 12100, 12150, 12200

PIVOT POINT: 12075

DAILY SUPPORT FOR NIFTY:  12050, 12000, 11950

DAILY CHART FOR NIFTY

Cheers for bears... Week started on a negative note. Nifty came down to  12037 below 12100 mark  dragged down by banking stocks exposed to telecom operators after the government ordered mobile carriers to immediately pay the adjusted gross revenue (AGR) dues.Tuesday also Bears continued to cheer & took nifty near 11900 mark. Telecom sector issue, lower economic growth, unexpected quarterly earnings & threats of disruptions in business due to the coronavirus rife in China helped bears to growl. Nifty started the day from 12028 made a high of 12030 & low of 11908 & finally managed to close the day below 12000 mark at 11992 down by 53 points. Wednesday Nifty shown some recovery from coronavirus. Bulls cheered the reopening of factories in China. Finally bulls shown some strength & took nifty above 12100 mark. Nifty started the day from 12090 made a high of 12134 and low of 12042 & finally closed at 12125. On Thursday After a one-day blip, benchmark indices once again slipped into the negative territory on Thursday, pulled down by heavyweights such as Reliance Industries (RIL), HDFC Bank, TCS, HUL and Asian Paints. Further, investors awaited more clarity on US President Donald Trump’s statement ahead of his visit to India that the two countries were working on a major trade deal. Nifty ended the session at 12081, down 45 points. Thursday was  the last trading session of the week on account of a holiday on February 21 for Maha Shivratri.

NIFTY: A STRONG SUPPORT WILL BE @ 11900; STRONG RESISTANCE LEVEL SEEN @12200

Post the sharp up move of around 500 points seen during the last week, the index now seems to have entered a consolidation phase with 12000 – 11900 acting as support levels whereas on the flip side, 12150 – 12200 acting as an intermediate hurdle. The primary trend remains bullish and posts some further consolidation we expect Index to surpass the above resistance and extend optimism towards 12250 – 12300 levels. Traders are hence advised to avoid contra bets and trade according to the above-mentioned levels.

TECHNICALLY SPEAKING.

We expect a stable start of the next week, with 12150  and 12200 levels acting as resistance, while support may come in at 12000 and 11900. The Relative Strength Index (RSI) on the chart was at 51.71 and it stayed neutral, showing no divergence against the price. The MACD was bullish, as it continued to trade above its signal line. Except for a small white body that was formed on the charts, no significant formations were seen.As per pattern analysis of the chart, Nifty has managed to bounce back from the 100-DMA level, which is at 11947. In the process, the index has also managed to move past short-term 20-DMA, but has halted just below the 50-DMA level at 12,139. All in all, the 50-DMA level will continue to act as an important resistance. Moreover, the index also has a pattern resistance in the form of a falling trend line that joins the 12,430 level to a subsequent lower top. Given the technical setup, the chances of profit booking at either current or higher levels cannot be ruled out. Also, with Friday being a holiday, the market participants could turn cautious towards the end of the session. We would recommend traders to use upmoves to protect profits and keep positions at a modest level. A cautious view is advised for the next week as f&o expiry ahead.