Technical Analysis

Nifty 50 June Futures (9,916)

Akhil Nallamuthu | Updated on June 02, 2020 Published on June 02, 2020

The domestic benchmark indices - the Sensex and the Nifty started the session on flat note and then began to trend upwards, following the positive Asian markets. The Nikkei 225 gained 1.2 per cent to 22,325 and Hang Seng index has advanced 0.74 per cent to 23.907 in today's session. The Sensex and the Nifty have advanced 1.4 per cent and 1.3 per cent respectively in the midst of volatility. The market breadth of the Nifty is biased towards advances. India VIX has fallen 1.6 per cent to 30.2 levels. Witnessing buying interest, the Nifty small-cap index has jumped 2.3 per cent outpacing the Nifty mid-cap index that has gained 1 per cent. Only Nifty FMCG and Metal indices are trading in the negative territory. Nifty media and realty are the top gainers, advanced 3.3 per cent and 2.9 per cent respectively.

The Nifty June month contract commenced the session with a gap-up open at 9,830. After an initial decline, the contract recorded an intra-day low at 9,780 and resumed the up-move. It has marked an intra-day high at 9,925 levels. Though the contract has advanced 1.2 per cent in line with the underlying Nifty spot but it is trading in discount, indicating that a cautious approach to be taken in the near term. Hence, traders should tread with caution and buy the contract with a fixed stop-loss at 9,850. A strong rally above the immediate resistance level of 9,925 can take it higher to 9,950 and then to 9,980. Next key resistances are at 10,000 and 10,030. That said, a fall below the vital support level of 9,850 can bring back selling pressure and drag the contract down to 9,830 and then to 9,800. Subsequent supports are at 9,780 and 9,750.

Strategy: Buy in dips with a fixed stop-loss at 9,850 levels

Supports: 9,850 and 9,930

Resistances: 9,925 and 9,950

Published on June 02, 2020
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