Technical Analysis

Nifty Call: Buy with stop-loss at 10,275 levels

Yoganand D BL Research Bureau | Updated on June 22, 2020

Nifty 50 June Futures (10,324)

The Sensex and Nifty started the session with a gap-up open despite weak Asian markets. The Nikkei 225 is marginally down by 0.2 per cent to 22,437 levels and Hang Seng index has slumped 0.8 per cent to 24,448 levels in today's session. After an initial rally, both the Sensex and Nifty began to witness a minor corrective decline. But the key benchmark indices found support at the intra-day low and are now moving sideways. The Sensex and Nifty have climbed 0.85 per cent and 0.8 per cent, respectively. The market breadth of Nifty index is biased towards advances. India VIX or fear index has climbed 2.6 per cent to 30.7 levels. Top sectoral gainers are Nifty PSU Bank index and Nifty Pharma index, that advanced 3 and 2.5 per cent, respectively. All the sectoral indices are hovering in the positive territory.

After a gap-up open, the Nifty June month contract extended the initial rally and registered an intra-day high at 10,347. But thereafter the contract experienced a corrective decline and marked an intra-day low at 10,236 levels. The contract again continued to trend upwards, breaching a key resistance at 10,300. The near-term outlook is bullish for the contract. Traders can make use of intra-day dips to buy the contract while maintaining a stop-loss at 10,275 levels. A strong rally above the immediate resistance at 10,350 can take the contract higher to 10,375 and 10,400 levels. Key supports below 10,280 are at 10,250 and 10,235. Subsequent supports to note are at 10,200 and 10,175.

Strategy: Make use of intra-day to buy with a stop-loss at 10,275 levels

Supports: 10,280 and 10,250

Resistances: 10,350 and 10,375

Published on June 22, 2020

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