Nifty Futures closed at 5405 which is 18 points higher than its previous close of 5387. A ‘Doji’ structure is formed on the daily chart suggesting strong support zone near 5350 level. Nifty Futures hovered near 5400 levels with shrunken trading volumes. In the current week, Nifty Futures needs to maintain the support zone of 5350 – 5300 as it is very crucial for maintaining intermediate trend. The downward breach of 5300 level on closing basis may see a sharp slide till 5200 levels. On Intraday chart, the resistance level is placed at 5566 and the corrective uptrend is expected to materialize only above this level. Last 25 trading sessions of Nifty Futures are showing a ‘Falling Wedge Structure’ and its upward breakout is placed at 5566, thus showing this level of much importance for reversing the trend. On weekly charts, the timing cycle clusters are indicating upward breakout after third week of February, hence sideways movements may be seen for next 9 trading sessions. The short term RSI on daily chart is lingering in oversold zone and yet not indicating any ‘Buy’ signal. The intraday resistance levels for Nifty Futures are placed at 5475 and 5566 whereas the support levels are placed at 5350 and 5300 respectively.
On stock specific recommending Fintech on long side for one day. CMP 768 / Stop Loss 735 / Target 801