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Trade setup for Wednesday 12, February 2020

All you need to know as a trader or Investor

Nifty has manged to recover yesterday after two bearish session however profit booking was seen after half of the session.

FIIs sold shares worth Rs 209.39 crore, while DIIs bought shares of worth Rs 344.63 crore in the Indian equity market on February 11, that could be the reason we saw profit booking on higher level.

Today's session is likely to start flat.

Sensex closed with a gain of 237 points, at 41,216.14 while Nifty closed at 12,107.90, up by 76 points.

Global markets are also positive that is good for domestic market.

SGX nifty also closed higher by 32 points on 11 February which shows positive opening for nifty.

Option Analysis:

Maximum open interest on call side at 12,500 of 27.54 lakh contracts.

Significant call writing was seen at the 12,400 strike price

Call unwinding was seen at 12000 strike price.

Maximum open interest on put side at 12000 strike price of 34 lakh.

Put writing was seen at the 12,100 strike price 2 lakh new contracts gets added.

Put unwinding was seen at the 11,600 strike price.

What to Look for

A ‘Shooting Star’ was formed on the daily charts. Such a formation occurs when an index opens higher, gets stronger, close near lower levels and that indicates bearish sentiment but we need to wait next candle for the confirmation.

RSI stood at above 51 on daily chart which creates some confusion in making a confirmed view for nifty so we need to rely on next candle to be formed. So one should wait nifty to cross 12140 for any upside conformation and if nifty breaches 12,100 nifty may continue to be in bearish trend.

Today's possible trade range for nifty can be 12,060 to 12,160.

Over all sentiment for today is seems to be negative as per the chart analysis but as mentioned above wait for next candle to be formed for any confirmation.

Keep Learning, Keep Earning !

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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