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Trade setup for Tuesday 04, February 2020

All you need to know as a trader or Investor

Sensex closed 137 points, higher at 39,872.31 while Nifty rose 46 points and closed at 11707.90.

As we have mentioned yesterday that some recovery can be seen from this level that happened indeed and nifty manged to closed in green, witnessed high volatility.

Broadly we can say that reaction of budget is done and now we can give more weight-age.

to technical analysis and technically nifty has formed a bullish candle on daily chart.

Global market has also shown some positivity.

SGX nifty also closed higher by 41 points on 03 February which shows positive opening for nifty.

Option Analysis:

Maximum open interest on call side at 12000 of 17 lakh contracts.

Significant call writing was seen at the 11,700 strike price

Call unwinding was seen at 12200 strike price.

Maximum open interest on put side at 12000 strike price of 23 lakh.

Put writing was seen at the 11,500 strike price 3 lakh new contracts gets added.

Put unwinding was seen at the 12,000 strike price.

What to look for:

As we discussed yesterday that RSI on the daily chart stood at 30.13, and marked a fresh 14-period low, which is bearish but at same time it shows nifty at oversold level and buyer may get active on this level feeling right time to enter.

and exactly nifty followed our analysis .

And today if you will look on the above chart its 1 hours candle chart which shows nifty is trading above 5 and 8 days moving average and RSI also moving to upward direction which gives a short term bullish signal. To confirm this uptrend wait RSI to cross above 50 for longer term. If we talk about short term nifty view which seems to be positive. For today wait nifty to close above 11750 for considering any view for upside and if nifty goes below 11680 then it may continue to be in downtrend as per above technical setup.

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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