[Premium] February Monthly Charts

First up is the Nifty 500, which closed around where it opened. The tight range over the last few months offers no edge, so we wait for a breakout to the upside or downside to determine the next directional move.

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Financials remain an issue, unable to break above resistance near 11,520. This is the largest sector of the market, so until this gets going to the upside, it will be tough for the broader market to move higher.

Consumer Goods are also struggling with resistance near 30,700. Another large sector that's no longer moving to the upside. That's a problem.

Weaker areas of the market like the Nifty Commodities Index are finding some support after nearing our downside price objective, reversing and closing near the highs of the month. While not a signal to rush out and buy it, any upside continuation above this month's high would suggest further mean reversion toward 3,600.

The Nifty Metal Index finally bounced after 5 months of downside, making new lows intra-month but closing right where it opened. Again, upside continuation is required to confirm this candle, but it's worth noting the first time we've seen buyers step in and close us well off the lows.

Pharma is gaining its footing after making new intra-month lows as well. This remains a sideways range, but a break above January's highs could suggest further upside toward the top of the range (10,300).

The Nifty Realty Index is coiling tightly, suggesting a big move may be ahead. If prices are above this 215 level, there's no reason to be short as the risk of a rally toward 290 is elevated.

Sun TV Network reclaimed former support near 575, suggesting potential upside toward 850 if this failed breakdown holds and prices exceed this month's highs.

Maruti Suzuki is one of the largest components of the Nifty Auto Index. It's testing support near 6,550 again. If buyers fail to step in at that level, then there's downside risk toward 4,400.

Copper is right back at the highs of a multi-year range. We've seen improvement in the price action of Base Metals across the board this year, so we should be watching for a breakout above 470 in Copper. If the breakouts in Silver and Gold fail, that likely means this rally in Base Metals will stall as well.

Silver made new highs intra-month, but reversed and closed at its lows. We want to see buyers step in here and keep it above this downtrend line as downside continuation would confirm a failed breakout (and likely drag Gold lower with it).

Those were the major takeaways from February.

Like we said, there wasn't a whole lot going on in terms of trend changes. This choppy trading environment continues, but we'll be analyzing and weighing the evidence again this weekend as we update the chartbooks, so stay tuned for more posts on what we're seeing.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team