Technical Analysis

Nifty Call: Buy with a stop-loss at 9,890 levels

Yoganand D | Updated on June 17, 2020

Nifty 50 June Futures (9,947)

The Sensex and the Nifty commenced the session in a negative note amid weak Asian markets. The Nikkei 225 has fallen 0.5 per cent to 22,455 while Hang Seng index has climbed 0.6 per cent to 24,501 levels in today's session. After initial choppiness, the Sensex and the Nifty started to trend upward, advancing about 0.5 per cent. The market breadth of the Nifty is biased towards advances. The India VIX has gained 1 per cent to 33.2 levels. Both the mid and small-cap indices have advanced 0.6 per cent and 0.9 per cent respectively. The Nifty FMCG and Metal indices are marginally hovering in the red. Top sectoral gainers are Nifty Realty and Nifty PVT Bank which have advanced about 1 per cent each.

Following a gap-down open at 9,867 the Nifty futures contract recorded an intra-day low at 9,810 levels. Subsequently, the contract began to recover and trend upwards, breaching a key resistance at 9,900. The near-term stance remains bullish as long as the contract trades above 9,900 levels. Traders with a near-term perspective can buy the contract with a stop-loss at 9,890 levels. A decisive rally above the next resistance level of 9,975 can take the contract higher to 10,000. Next resistances are at 10,030 and 10,050 levels. Supports below 9,900 are at 9,875 and 9,850.

Strategy: Make use of intra-day dips to buy with a stop-loss at 9,890 levels

Supports: 9,900 and 9,875

Resistances: 9,975 and 10,000

Published on June 17, 2020

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