Technical Analysis

Nifty 50 June Futures (15,740)

Akhil Nallamuthu | Updated on June 07, 2021

BL Research Bureau

Even as the Asian equity markets have been sending out mixed signal, the domestic equity benchmark indices i.e., the Nifty 50 and the Sensex opened on a positive note and have been able to sustain the gain so far. While the Nifty is up by 0.3 per cent, the Sensex is up by 0.15 per cent. Among the major Asian indices, the Nikkei 225 gained nearly 0.3 per cent and KOSPI gained about 0.5 per cent. But the Hang Seng and the ASX 200 lost 0.5 per cent and 0.2 per cent.

The market breadth of the Nifty 50 is indicating bullish as 39 out of the 50 stocks are in the green and there is a significant decline in volatility, substantiating the positivity i.e., India VIX has tumbled by over 7 per cent to 14.78. Moreover, the buying seems to be broader as all the mid- and small-cap indices are up by more than 1 per cent. Though on the sectoral indices, the Nifty Financial services and the Nifty Realty index are down by 0.35 and 0.2 per cent, respectively. All other sectors are gaining led by the Nifty Media and Auto index, which are up by 1.2 and 1.1 per cent, respectively.

Futures

Following the underlying Nifty 50 index, the futures contract (June expiry) opened with a gap-up at 15,769 against Friday’s close of 15,700. But after marking an intraday high of 15,773, the contract moderate and is now hovering at 15,735. Since the price level of 15,750 can potentially be a resistance, the futures might struggle to go beyond this level. Whereas, on the other hand, 15,725 is a support, below which 15,700 is a strong support.

Until the contract stays above 15,700, the intraday trend will remain bullish and so, traders can consider going long on declines with stop-loss at 15,680. On the upside, a breach of 15,750 henceforth can lift the contract to 15,800. A decisive break out of this level can intensify the rally, potentially taking it to 15,900.

Strategy: Go long with stop-loss at 15,680

Supports: 15,725 and 15,700

Resistances: 15,750 and 15,800

Published on June 07, 2021

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