Technical Analysis

Nifty 50 June Futures (15,825): Wait for a rise and go short at 15,880 and 15,930

Gurumurthy K |BL Research Bureau | | Updated on: Jun 14, 2022
Representative image

Representative image

Keep the initial stop-loss at 16,030 for the target of 15,660

The domestic benchmark indices on Tuesday are attempting to recover after opening with a gap-down. Both Sensex and Nifty 50 are trading marginally lower by 0.1 per cent each. Nifty is at 15,760 and Sensex is trading at 52,785.

Intraday resistance could be at 15,800 on the Nifty and around 53,000 on the Sensex. Considering the overall negative sentiment prevailing in the global markets, the upside in the domestic indices is likely to be capped. As such the Sensex and Nifty are likely to remain under pressure and fall-back during the day. As mentioned on Monday, 15,645 on the Nifty and 52,400 on the Sensex are crucial supports to watch. A break below them can trigger a steeper fall going ahead.

But in case if the Nifty manages to see a sustained rise past 15,800, the recovery rally can extend up to 15,900-15,950.

In Asia, all major indices are trading in red. Nikkei 225 (26,530), Shanghai Composite (3,203), Hang Seng (20,876) and Kospi (2,480) are all down in the range of 0.9-1.7 per cent.

In the US, the Dow Jones Industrial Average (30,516, down 2.79 per cent) extended the fall yesterday. The view is bearish to test 30,000.

Futures: The Nifty 50 June (15,825) Futures is up 0.32 per cent. It has support at 15,760. If the contract manages to sustain above this support, a rise to 15,900-15,950 is possible. The upside is likely to be capped at 15,950. A rise beyond 15,950 is not likely. A break below 15,760 can drag it to 15,650 initially. A break below 15,650 will be very bearish to see steeper fall.

Traders can wait for a rise and go short at 15,880 and accumulate at 15,930. Stop-loss can be kept at 16,030. Trail the stop-loss down to 15,840 as soon as the contract falls to 15,770. Move the stop-loss further down to 15,720 as soon as the contract touches 15,680 on the downside. Book profits at 15,660.

Trading Strategy: Go short on a rise at 15,880 and 15,930. Keep the stop-loss at 16,030 for the target of 15,660. Trail the stop-loss down to 15,840 as soon as the contract falls to 15,770. Move the stop-loss further down to 15,720 as soon as the contract touches 15,680 on the downside

Supports: 15,900 and 15,950

Resistances: 15,760 and 15,650

Published on June 14, 2022
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