Technical Analysis

Nifty call: Consider fresh long positions with fixed stop-loss on rally above 15,830

Yoganand D | Updated on June 16, 2021

Nifty 50 June futures (15,812)

Taking negative cues from the Asian markets, the Sensex and Nifty 50 started the session on a negative note. The Nikkei 225 index is down by 0.5 per cent at 29,291 and the Hang Seng Index has also fallen 0.7 per cent to 28,437 levels in today's session.

After an initial rally, the Sensex and Nifty 50 began to decline and are down by 0.56 per cent and 0.6 per cent respectively. The market breadth of the Nifty 50 is biased towards declines. India VIX has climbed 1.14 per cent to 14.7 levels. Both the Nifty mid and small-cap indices have fallen 0.8 per cent and 0.5 per cent correspondingly. The Nifty FMCG and IT are hovering in the positive territory, slightly up by 0.6 per cent and 0.17 per cent respectively. Selling pressure is witnessing in the Nifty metal index that has tumbled 2 per cent and also Nifty Bank, which is down by 0.76 per cent.

The Nifty June month contract began the session in the negative territory, opening at 15,859 against the previous close at 15,879 levels. Following an intra-day high at 15,885 the contract began to decline and has slipped below 15,800 levels. It has recorded an intra-day low at 15,776 levels and managed to reverse.

However, the contract faces a key resistance at 15,830. The contract is range-bound between 15,780 and 15,830. Traders should tread with caution as long as the contract trades in this range. Can consider initiating fresh long positions with a fixed stop-loss only on a strong rally above 15,830. The contract trend upwards and test subsequent resistances at 15,860 and then 15,880 levels. Next key barrier is at 15,900. Conversely, if the contract falls below 15,780 selling pressure can intensify and pull the contract down to 15,750 and then to 15,725 levels.

Strategy: Consider initiating fresh long positions with a fixed stop-loss only on a strong rally above 15,830.

Supports: 15,780 and 15,750

Resistances: 15,830 and 15,860

Published on June 16, 2021

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