Stocks

Nifty Call: Use intraday dips to buy contract with stop-loss at 15,790

Yoganand D | Updated on June 22, 2021

Key supports below 15,800 are placed at 15,770 and 15,750 levels

Nifty 50 June Futures (15,843)

Taking positive cues from the global markets, the domestic equity indices - the Sensex and the Nifty 50, began the session with a gap-up open. Last session, the Dow gained 1.7 per cent to 33,876, and S&P 500 climbed 1.4 per cent to 4,224 levels. Among the Asian markets, the Nikkei 225 jumped 2.9 per cent to 28,837 levels and Hang Seng index is hovering flat at 28,452 levels in today's session. The Sensex has gained 0.6 per cent and the Nifty 50 has advanced 0.7 per cent so far. The market breadth of the Nifty 50 is biased towards advances. The India VIX has fallen 2.6 per cent to 14.6 levels. Both the Nifty mid and small-cap indices have advanced 0.8 per cent and 1 per cent, respectively. The Nifty FMCG and Pharma are marginally down. Top sectoral gainers are Nifty Auto and Nifty media indices that have advanced 1.7 per cent and 1.3 per cent correspondingly.

The Nifty June month contract began the session with a gap-up open at 15,810 against the previous close at 15,743 levels. After marking an intraday low at 15,800 the contract took support and bounced up. The near-term stance stays positive as long as the contract trades above the key base level of 15,800. Traders can make use of intraday dips to buy the contract while maintaining a fixed stop-loss at 15,790 levels. The contract test resistance at 15,875. A rally above this level can encounter vital resistance at 15,900 levels. Next resistances are placed at 15,930 and 15,950 levels. Key supports below 15,800 are placed at 15,770 and 15,750 levels.

Strategy: Make use of intraday dips to buy the contract with a stop-loss at 15,790 levels

Supports: 15,800 and 15,770

Resistances: 15,875 and 15,900

Published on June 22, 2021

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