Technical Analysis

Nifty Call: Go long on a decisive rally above 15,750 levels with a fixed stop-loss

Yoganand D BL Research Bureau | Updated on June 17, 2021

The India VIX, the volatility index, has climbed 2.9 per cent to 15.3 levels

Nifty 50 June Futures (15,739)

Tracking bearish cues from the global markets, the Sensex and the Nifty 50 began the session with a gap-down open but subsequently started to recover.

Last session, the Dow Jones had fallen 0.7 per cent to 34,033 and S&P 500 had slipped 0.5 per cent to 4,223 levels. Asian markets are mixed – the Nikkei 225 has declined 0.9 per cent to 29,018 levels, whereas the Hang Seng index is hovering flat at 28,430 levels in today’s session.

After recovering from the early loss, the benchmark indices witnessed minor correction and are once again on a recovery mode. The Sensex and the Nifty 50 have trimmed their intra-day losses to 0.22 per cent and 0.25 per cent respectively. The India VIX - the volatility index has climbed 2.9 per cent to 15.3 levels. The Nifty 50 mid-cap index is down by 0.5 per cent and Nifty small-cap index is hovering flat.

Among the sectoral indices, the Nifty FMCG and IT are trading in the positive territory, advancing 0.3 per cent and 0.35 per cent, respectively. On the other hand, selling pressure is seen in the Nifty metal index which is down by 1.5 per cent.

The Nifty June month contract started the session with a gap-down open at 15,671 against the previous close at 15,790. After marking an intra day low at 15,656 the contract began to recover and has moved above 15,700 levels. The contract faces a key resistance ahead at 15,750 levels.

A strong break above this level can take the contract northwards to 15,780 and then to 15,800 levels. Next resistances are at 15,820 and then to 15,850 levels. Key supports below 15,700 are placed at 15,680 and 15,650 levels.

Supports: 15,700 and 15,680

Resistances: 15,750 and 15,780

Published on June 17, 2021

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