Technical Analysis

Nifty Call: Buy with stop-loss at 10,320

Yoganand D BL Research Bureau | Updated on June 23, 2020

Nifty 50 June Futures (10,376)

Taking positive cues from the global markets, the domestic equity indices started the session with a gap-up open. The US markets advanced in the last session; the Dow Jones climbed 0.6 per cent to 26,024 and S&P 500 Index had gained 0.65 per cent to 3,117 levels. The Nikkei 225 indexrallied 0.5 per cent to 22,549 and Hang Seng Index has surged 1 per cent to 24,750 levels in today's session. The Sensex and Nifty climbed 0.7 per cent each, so far. The market breadth of the Nifty index is biased towards advances. The India VIX has rallied 1.5 per cent to 30.9 levels. All the sectoral indices are hovering in the positive territory. Nifty PSU Bank index is the top gainer that has jumped 3.2 per cent.

The Nifty June month contract began the session with a gap-up open at 10,328. Following an initial decline, the contract marked an intra-day low at 10,282 and resumed the up-move. The contract thereafter breached the key resistance at 10,300 and continued to trend upwards. It has an immediate resistance at 10,400. A strong break above this barrier will take the contract higher to 10,425 and 10,450 levels. Immediate supports are at 10,350 and 10,330. As long as the contract trades above 10,300 the near term outlook will remain positive. Traders can make use of intra-day dips to buy the contract with a stop-loss at 10,320. On the downside, if the contract tumbles below 10,300 can bring back selling interest and pull the contract down to 10,280 and 10,250 levels.

Strategy: Buy in declines with a stop-loss at 10,320 levels

Supports: 10,330 and 10,300

Resistances: 10,400 and 10,425

Published on June 23, 2020

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