Technical Analysis

Nifty Call: Desist trading in range between 11,775 and 11,820

Yoganand D, BL Research Bureau | Updated on June 21, 2019 Published on June 21, 2019

Nifty 50 June Futures (11,798)

The Sensex and the Nifty started the session in negative territory taking cues from the weak Asian markets. The Nikkei 225 has declined almost 1 per cent to 21,258 levels and Hang Seng index has slipped 0.4 per cent to 28,441 in today's session.

After initial decline the Sensex and the Nifty began to move sideways in the negative territory. The market breadth of the Nifty index is biased towards declines. The India VIX has climbed 3.2 per cent to 14.44 levels. The Nifty Pharma index has slumped 1.4 per cent witnessing selling pressure.

The Nifty June month contract began the session in red, opening at 11,839. After an initial rally the contract recorded an intra-day high at 11,842 and started to decline. The contract has marked an intra-day low at 11,773 levels.

The contract is range-bound between 11,775 and 11,820 levels. As long as the contract trades in this range, avoid taking fresh positions. A strong rally above 11,820 levels can take the contract higher to 11,840 levels and 11,860 in the near term.

In that case, traders can take long positions with a fixed stop-loss. A decisive rally above 11,860 can push the contract higher to 11,880 and 11,900 levels. On the other hand, a conclusive fall below 11,775 can strengthen the down-move and drag the contract down to 11,750. Subsequent supports are at 11,725 and 11,700 levels.

Strategy: The contract is range-bound between 11,775 and 11,820. Desist trading as long as the contract trades in this range

Supports: 11,775 and 11,750

Resistances: 11,820 and 11,840

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Published on June 21, 2019
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