Nifty Call: Initiate short position on a fall below 15,700 levels

Yoganand D | Updated on June 10, 2021

Resistance above 15,760 is placed at 15,800 levels

Nifty 50 June Futures (15,722) The Sensex and the Nifty 50 began the session on a positive with a minor gap-up open. Both the indices continued to trend upwards however, recently witnesses selling interest at higher levels. The Sensex and the Nifty 50 are up by 0.4 per cent each. The market breadth of the Nifty 50 is biased towards advances. There is an increase in volatility as the India VIX has climbed 1.45 per cent to 14.9 levels. On the back of buying interest the Nifty mid and small-cap indices have advanced 1 per cent and 1.2 per cent respectively. Barring the Nifty Auto index which is down by 0.28 per cent all the other sectoral indices are featuring in the positive territory. The top gainers are Nifty media and PSU Bank indices that are up by 1.8 per cent and 1.48 per cent correspondingly.

The June month Nifty 50 contract began the session with a gap-up open at 15,682 against the previous close at 15,660. The contract recorded an intraday low at 15,656 and bounced up. It surpassed the resistance at 15,700 and registered an intraday high at 15,760. But the contract is slightly off from the intraday high and now trades above the vital level of 15,700. A fall below the base level of 15,700 can bring back selling interest and pull the contract down to 15,660 levels. Next key supports are placed at 15,630 and 15,600 levels. Key resistances are at 15,740 and 15,760 could limit the rally on the upside. Hence, traders should tread with caution and consider initiating fresh short positions on a fall below 15,700 levels with a fixed stop-loss. Resistance above 15,760 is placed at 15,800 levels.

Strategy: Initiate fresh short position on a fall below 15,700 levels with a fixed stop-loss

Supports: 15,700 and 15,660

Resistances: 15,740 and 15,760

Published on June 10, 2021

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