NIFTY for 20th February

NSE:NIFTY   Nifty 50 Index
Nifty opened to positive cues from rest of Asian markets and registered a 133 point rise to close at 12125.90, just above 20 and 50 DEMA levels. Now does it mean that global fear has ended and our markets are on our own? Not likely since number of deaths in China are yet to stagnate and so are number of infections across globe. The deaths have crossed 2000 and total numbers of infected persons are above 75000! And world is treating these figures with some doubt because it is China. We can easily see a very different picture tomorrow. Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content. FIIs were net Sellers (190 Crs ) and DIIs were net buyers (590 Crs ) today. According to options data, on PUT side, highest total OI and highest fresh Put writing is seen at 12100. So it can be taken as a support but that would be risky since it is just 25 points below CMP . So I would rather take 12000 as dependable support since it has 2nd highest total OI and 3rd highest Put writing and it is 125 points below CMP . On CALL side, highest total OI is at 12200 and there is Call unwinding on almost all strikes due to big rise today. Yet 12200 can be taken as resistance for tomorrow. On 15 min chart, a strong selling area as well as a strong buying area is marked and each would have held good had it been some other day. But since tomorrow is expiry, take trades on these levels during first half only. Use STOP LOSS since there is strong possibility of wild trades in both directions tomorrow.
All the best. Happy trading.

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