Nifty call: Wait for a break of the range between 14,700 and 14,770

Nifty 50 February futures (14,740)

Following the bullish cues from the Asian market, the Indian benchmark indices opened the day on the front foot. However, the gains did not sustain and both the indices i.e., the Nifty 50 and the Sensex, gave up most of their gains and are now trading higher by 0.25 per cent each, compared to their prior close. At today’s peak, both the indices are up by 1.2 per cent each.

Among the major Asian indices, the Nikkei 225 and the ASX 200 ended today’s session with a gain of 0.5 per cent and 0.9 per cent, respectively. The Hang Seng is up by about 1 per cent.

Since the Nifty 50 index is in the green, the market breadth of the index is positively inclined at 35-15. Also, the volatility index – India VIX – has come down by a percentage point to 25.22. However, given how the index has lost ground over the past hour, the likelihood of bulls being in control is fading.

The mid- and small-cap indices are up between 0.6 and 1.2 per cent. Among the sectoral indices, the Nifty metal and realty indices are the top gainers, each up by nearly 2.6 per cent, whereas the Nifty financial services and private bank index are the top losers, each down by about 0.6 per cent.

Futures: The February futures contract of the Nifty 50 index began the session with a gap-up at 14,755 compared to yesterday’s close of 14,672. The contract then witnessed a rally to mark an intra-day high of 14,871. However, sellers rushed in at higher levels, overturning the direction. Since the recent trend has been bearish, the rally is being seen as an entry point by sellers. Currently trading at 14,730, the contract will face a hurdle at 14,770, where 14,700 can be a good support.

Considering the price movement since morning, the contract is now trading between the two important levels of 14,700 and 14,770. Hence, traders can stay on the sidelines and initiate fresh trades along the direction of the break of the above-mentioned price range.

Resistances above 14,770 are at 14,800 and 14,870 ,whereas supports below 14,700 are at 14,640 and 14,600.

Strategy: Wait for a break of the range between 14,700 and 14,770

Supports: 14,700 and 14,640

Resistances: 14,770 and 14,800