F&O Manual: Nifty Trades Near All

F&O Manual: Nifty Trades Near All

The Nifty index traded near all-time highs on Wednesday, as participants remained cautious ahead of the Reserve Bank of India’s (RBI) policy decision due later in the day. The index opened at 17,372.80 and touched a high of 17,406.60 during the day. However, it pared some of its gains and closed at 17,364.80, up 17.90 points or 0.10%.

The broader market was also mixed, with the BSE Sensex closing 42.35 points or 0.07% higher at 60,072.24. The BSE Midcap index declined 0.31% and the BSE Smallcap index lost 0.44%.

On the Nifty Futures front, the February contract closed at 17,415.20, up 13.00 points or 0.07%. The March contract closed at 17,480.00, up 11.00 points or 0.06%.

Key highlights of the day’s trade:

Nifty traded near all-time highs: The index touched a high of 17,406.60 during the day, just shy of its all-time high of 17,410.75.
Broader market was mixed: The BSE Midcap index declined 0.31% and the BSE Smallcap index lost 0.44%.
Nifty Futures closed higher: The February contract closed at 17,415.20, up 13.00 points or 0.07%. The March contract closed at 17,480.00, up 11.00 points or 0.06%.

Technical outlook:

The Nifty index has been trading in a range between 17,200 and 17,400 for the past few days. A break above 17,400 could lead to further upside, while a break below 17,200 could result in a correction.

Trading strategy:

Traders could consider buying the Nifty index above 17,400 with a stop loss below 17,200. A target of 17,500 could be kept for this trade. Alternatively, traders could consider selling the index below 17,200 with a stop loss above 17,400. A target of 17,100 could be kept for this trade.