Technical Analysis

Nifty 50 June Futures (15,810): Go short now and at 15,870

Gurumurthy K |BL Research Bureau | | Updated on: Jun 13, 2022

Keep the stop-loss at 15,930 for the target of 15,640

It’s a sea of red all over. The global equity markets have been witnessing a strong sell-off. The US market fell sharply on Friday after the inflation data release. A similar trend is seen in the Asian markets on Monday. Against this background, the US Federal Reserve meeting outcome on Wednesday will be very crucial.

The Dow Jones Industrial Average (31,392) tumbled over 2 per cent on Friday. The view is bearish, and it can fall further this week.

All major Asian indices are trading sharply lower. Nikkei 225 (27,014.66), Shanghai Composite (3,248.39), Hang Seng (21,083.57) and Kospi (2,512.10) are down in the range of 1.1 to 3.3 per cent.

Taking cues from the global equities, India’s Sensex and Nifty 50 are down over 2.5 per cent each today. Nifty is at 15,791 and Sensex is at 52,875. Crucial supports for both the indices are at 15,645 and 52,400, respectively. A break below these levels will trigger a steeper fall this week.

Futures: The Nifty 50 June (15,810) Futures has tumbled 2.52 per cent. Immediate support is at 15,700. A break below it can trigger a steeper fall to 15,000 and even lower in the coming days. Strong resistance will now be in the 15,900-16,000 region. Intermediate bounce above 15,800 can find resistance in this zone.

Positional trades are recommended at this point of time rather than going for intraday trades. Go short now and accumulate shorts at 15,870. Keep the stop-loss at 15,930. Trail the stop-loss down to 15,780 as soon as the contract falls to 15,730. Move the stop-loss down to 15,710 as soon as the contract touches 15,670. Book profits at 15,640.

The contract will have to rise past 16,000 decisively to ease the downside pressure and avoid a steeper fall. But that looks less likely as seen from the charts.

Trading Strategy: Go short now and on a rise at 15,870. Keep the stop-loss at 15,930 for the target of 15,640. Trail the stop-loss down to 15,780 as soon as the contract falls to 15,730. Move the stop-loss down to 15,710 as soon as the contract touches 15,670.

Supports: 15,700 and 15,500

Resistances: 15,900 and 16,000

Published on June 13, 2022
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