Technical Analysis

Nifty Call: Buy with stop-loss at 11,715 levels

Yoganand D, BL Research Bureau | Updated on June 25, 2019 Published on June 25, 2019

Nifty 50 June Futures (11,747)

Taking cues from the bearish Asian markets, the domestic key indices started the session on a  negative note - Nikkei 225 is down by 0.4 per cent while Hang Seng index has slumped 1.2 per cent. However following a gap-down opening, the Sensex and the Nifty began to trend up.

The Sensex and the Nifty have rallied about 0.3 per cent each. The market breadth of the Nifty index is biased towards advances. The India VIX is up by 0.7 per cent to 15.33 levels. The Nifty mid- and small-cap indices have increased marginally by 0.3 per cent and 0.1 per cent respectively.

After a gap-down opening at 11,684, the Nifty June month contract marked an intra-day low at 11,666. Subsequently, the contract began to trend up and has breached key resistance at 11,720 levels. As long as the contract trades above 11,720 the near-term outlook remains positive.

Traders can buy in declines with a stop-loss at 11,715 levels. A strong rally above 11,765 can take the contract higher to 11,785 and 11,800 levels. Next key resistances are at 11,825 and 11,850 levels.

On the other hand, a strong plunge below the key base level of 11,700 can bring back selling pressure and drag the contract down to 11,680 and 11,665 levels once again. Subsequent key supports are at 11,650 and 11,630 levels.

Strategy: Buy in declines while maintaining a stop-loss at 11,715 levels  

Supports: 11,720 and 11,700

Resistances: 11,765 and 11,785

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Published on June 25, 2019
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