Trade setup for Tuesday 11, February 2020
All you need to know as a trader or Investor
Nifty is closing in red from last two days but managing to close above 12,000.
Today also we can see slow start like yesterday and nifty is likely to be in consolidation phase and volatility is expected.
Sensex closed 162 points, lower at 40,979.62 while Nifty closed with a loss of 67 points, at 12,031.50.
Corona virus impacting global market however yesterday global market was positive and recovered from last session.
SGX nifty also closed with the gain 44 points on 10 February which shows positive opening for nifty.
Option Analysis:
Maximum open interest on call side at 12500 of 27 lakh contracts.
Significant call writingwas seen at the 12,000 strike price
Call unwinding was seen at 11,800 strike price.
Maximum open interest on put side at 12000 strike price of 34 lakh.
Put writing was seen at the 12,000 strike price 3 lakh new contracts gets added.
Put unwinding was seen at the 12,100 strike price.
What to Look For:
The Relative Strength Index (RSI) on the daily chart show below 50 which means nifty is in bearish trend however if we look on hourly chart we see some pull back from this level but that wont sustain for long as over all trend seem to be negative.
There are possibility nifty start in positive as global market data is positive today but we have to closely watch nifty to close above 12,070 for making any upside view. If nifty manage to close above this level we can see nifty remain above this and trade in green through out the session. But if nifty goes further down and give closing below 11,990 then nifty my continue to be in down and will close in red in consecutive third session.
For trader it is advised to watch all the levels and do not stick in one direction of trade being optimistic, keep you position as market goes book profit on all incremental and follow the technical chart and act accordingly.
Today's trading range for nifty could be between 11,950 to 12,100.
To get success in index trading learn technical analysis as much as possible and do not speculate and trade. Learn money management never take loss more than 2% of your capital, place stop loss strictly.
Disclaimer: All the information shared only for learning purpose, we do not provide any tip or recommendation. Please do consult with your investment adviser before making any trade or investment decision.
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