Technical Analysis

Nifty Call: Buy on declines with a fixed stop-loss at 10,245 levels

Yoganand D | Updated on June 30, 2020 Published on June 30, 2020

Nifty 50 July Futures (10,273)

Taking positive cues from the bullish Asian markets, both the Sensex and the Nifty started the session with a gap-up open. The Nikkei 225 has advanced 1.3 per cent to 22,288 levels, and Hang Seng index has climbed 0.3 per cent to 24,376 levels in today's session. The Dow Jones had gained 2.2 per cent, and the S&P 500 index had advanced 1.5 per cent in the last session. Both the Sensex and the Nifty have been moving sideways after initial gains. The benchmark indices have gained about 0.5 per cent. The market breadth of the Nifty index is biased towards advances. India VIX is hovering flat at 28.9 levels. The Nifty mid and small-cap indices have rallied 0.6 per cent and 0.2 per cent respectively.

The Nifty July contract began the session with a gap-up open at 10,315. After an initial rally, the contract marked an intra-day high at 10,343 and started to decline. The contract recorded an intra-day low at 10,256 and moving sideways. Traders can make use of intra-day dips to buy the contract while maintaining a stop-loss at 10,245. A decisive rally above the immediate resistance at 10,300 and take the contract higher at 10,325 and 10,350 levels. On the other hand, a decline below 10,250 can pull the contract down to 10,230 and then to 10,200 levels. In that case, traders can desist taking new long positions.

Strategy: Buy in declines with a fixed stop-loss at 10,245 levels

Supports: 10,250 and 10,230

Resistances: 10,300 and 10,325

Published on June 30, 2020
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