Technical Analysis

Nifty call: Buy on dips with stop-loss at 15,850 levels

Yoganand D | Updated on June 15, 2021

Nifty 50 June futures (15,896)

Amid mixed Asian markets, the Nifty 50 and the Sensex commenced the session on a positive note, opening with an upward gap. The Nikkei 225 has gained 0.96 per cent to 29,441,whereas the Hang Seng index is down by 0.7 per cent at 28,641 levels in today's session.

The domestic benchmark indices - the Sensex and the Nifty 50 - have advanced 0.5 per cent each and are trading in a narrow band. The market breadth of the Nifty 50 is biased towards advances. India VIX has fallen 1.3 per cent to 14.5 levels.

Both the Nifty mid and smallcap indices have advanced 0.74 per cent and 0.7 per cent respectively. Baring Nifty pharma, which is down by 0.48 per cent, all the other sectoral indices are hovering in positive territory.

The top sectoral gainers are Nifty media, up by 1.6 per cent, followed by Nifty PVT Bank and the realty indices that have climbed 1 per cent each.

The June month Nifty futures contract began the session with a gap-up, opening at 15,866 levels. After an initial decline, the contract recorded an intra-day low at 15,853 and started to trend upwards. The near-term outlook stays positive as long as the contract trades above 15,850 levels. Traders can make use of intra-day dips to buy the contract, while maintaining a stop-loss at 15,850. A strong rally above 15,900 can take the contract higher to 15,925 and then to 15,950 levels. Key supports below 15,850 are placed at 15,820 and 15,800 levels.

Strategy: Make use of intra-day dips to buy the contract with a stop-loss at 15,850 levels

Supports: 15,850 and 15,820

Resistances: 15,925 and 15,950

Published on June 15, 2021

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