Technical Analysis

Nifty 50 July Futures (15,840): July 7, 2021

Akhil Nallamuthu | Updated on July 07, 2021

BL Research Bureau

The Nifty 50 and the Sensex opened today’s session on a flat note and then moved up a little. They are now up by about 0.15 per cent for the day so far as the Nifty is at 15,840 and the Sensex is at 52,955. Major Asian equity indices are not unidirectional as the ASX 200 closed with a gain of 0.9 per cent whereas the Nikkei 225 lost nearly 1 per cent.

While the Nifty has gained only marginally, the market breadth is indicating good bullish bias as the advance-decline ratio stands at 31-19. Also, the volatility remains almost at the same level as of yesterday as indicated by India VIX – the volatility index, which is currently at 12.32. The mid- and small cap indices have gained between 0.1 and 0.4 per cent. Among the sectoral indices, barring the Nifty Auto and Media index, which are down by 0.2 per cent each, all others are in the green. The Nifty Realty is the top gainer, up by nearly 2 per cent followed by the Nifty FMCG index, up by 0.4 per cent so far.

Futures: The July series Nifty 50 futures opened marginally lower at 15,826 versus yesterday’s close of 15,837. After marking a low of 15,788, the contract recovered and is currently trading around 15,840. While there is a bullish bias as shown by market breadth and the sectoral indices, the price action since the beginning of the session does not lend us a clear direction. Considering these factors, traders can go long in the contract with stop-loss at 15,830 if it breaks out of the immediate resistance at 15,875. Above 15,900, it can rally to 15,950 and a breach of this level can lift the contract to 16,000. Alternatively, if the contract declines below 15,800, the intraday trend can turn negative wherein the price could fall to 15,770 and then possibly to 15,730.

Strategy: Go long above 15,875 with stop-loss at 15,830

Supports: 15,800 and 15,770

Resistances: 15,900 and 15,950

Published on July 07, 2021

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