Stocks

Nifty call: Initiate fresh long positions on strong rally above 15,630 level

Yoganand D | Updated on June 18, 2021

Nifty 50 June Futures (15,595)

After a gap-up open, the Sensex and the Nifty 50 started to decline on the back of selling interest. However, the benchmark indices found support at the intraday low and are on a recovery mode now. The Sensex and the Nifty 50 have trimmed their intraday loss to 0.5 per cent and 0.56 per cent respectively.

The India VIX has gained marginally by 0.24 per cent to 15.3 levels. The market breadth of the Nifty 50 is biased towards declines. On the back of profit-booking, the Nifty mid and small-cap indices have tumbled 1.56 per cent and 1.58 per cent respectively. The Nifty FMCG and Pharma sectoral indices are marginally hovering in the positive territory. Selling pressure is seen in the Nifty PSU Bank and metal indices that have slumped 2.9 per cent and 2.6 per cent respectively.

Nifty June month contract

The Nifty June month contract began the session on a positive note, opening with an upward gap at 15,758 level. Post recording an intraday high at 15,774, the contract started to decline and has breached key supports at 15,700 and 15,600 levels. However, after marking an intra-day low at 15,465 the contract bounced up and has rallied above the 15,500 level.

The contract faces an intraday resistance in the band between 15,620 and 15,630. An emphatic break above this band can bring back corrective rally and take the contract higher to 15,660 and then to 15,700 levels. Next resistance is placed at 15,740 level. Traders should tread with caution and consider initiating fresh long positions on a strong rally above 15,630 levels with a fixed stop-loss. On the downside, if the contract falls below the immediate support level of 15,540, it can reinforce the selling pressure and pull the contract down to 15,500 and 15470 levels.

Strategy: Consider initiating fresh long positions on a strong rally above 15,630 level with fixed stop-loss

Supports: 15,540 and 15,500

Resistances: 15,630 and 15,660

Published on June 18, 2021

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