Bullish technical set up is seen not only for Indian markets, but across the globe. Short-term traders are advised to focus on 15,470 levels as resistance for the Nifty50 index.
The index witnessed profit booking in the last hour of the trade on Tuesday, February 9, 2021. Nifty ended with a minor loss to close at 15,109. Nifty, Bank Nifty and Financial Nifty indices have been forming candle with the small body for the last three consecutive sessions, which indicates that bullish momentum is getting lost. Post Budget, markets have registered a sharp rally and still, there is no sign of reversal seen as of yet. Nearest support for the Nifty is seen at 5 days EMA which is placed at 14,929, and unless that is breached on a closing basis, the trend should be considered bullish only. On the upside, Nifty faces resistance at 15,470 which happens to be 161.8% retracement of the entire fall seen from January 2020 (12,430) to March 2020 (7,511).
By closing at all-time high levels, Nifty has resumed its primary uptrend. In the last two sessions, Nifty has rallied almost 8 per cent. Nifty Bank and Nifty Financial Services indices have outperformed by surging more than 11 per cent. While after the sharp rally there is a possibility of consolidation in the Index, at the same time, stock specific moves could continue on the upside. Support has shifted up to 14,400 odd levels in Nifty. Medium term target for the Nifty is seen somewhere at 15,470 levels, which happens to be 161.8 per cent Fibonacci retracement of the entire down move seen from Jan 2020 top to March 2020 bottom.
Read more about Nifty outlook & stock picks by Vinay Rajani: Buy Ashok Leyland, Tata Steel on Business Standard. The Nifty50 has recovered more than 62 per cent of the entire fall which was registered from 14,653 to 14,222
Nifty is in continuation of an uptrend. Every dip is getting absorbed by market and momentum has been in the favour of bulls. Support for the Nifty has shifted to 14,450 odd levels and unless that breaches, traders should remain bullish. Auto and PSE good sectors are likely to perform well for the short-term. Immediate resistance for the Nifty is seen at 14,890. Stoploss in longs should be kept on trailing basis.
Stock recommendation:
Buy Coal India (146.85) | Target: Rs 154 | Stop-loss: Rs 141 The stock has formed a rounding bottom formation on the daily chart. Its price has surpassed the previous top resistance of 146 with high volumes and is placed above all important moving averages. Indicator and oscillator setup is bullish on daily and weekly chart.