Technical Analysis

Nifty call: Go long on rally above 10,280 levels, with a fixed stop-loss

Yoganand D | Updated on June 26, 2020 Published on June 26, 2020

Nifty 50 July futures (10,262)

The Sensex and Nifty commenced the session in positive territory amid mixed Asian markets. The Nikkei 225 has surged 1.1 per cent to 22,512, while the Hang Seng index has fallen 0.76 per cent to 24,592 in today's session.

US indices - the Dow Jones and S&P 500 - had gained 1.2 per cent and 1.1 per cent respectively in the last session. The market breadth of the Nifty index is biased towards advances.

India VIX has marginally declined by 0.4 per cent to 29.6 levels. Both the Nifty mid and small-cap indices have climbed 0.7 per cent and 0.6 per cent correspondingly. The Nifty IT index has jumped 4 per cent in today's session, backed by a strong rally in IT stocks, namely, Infosys, TCS and Wipro, which havefx advanced 4 to 7 per cent. Nifty Bank, FMCG and Pharma have slumped about 0.8 per cent each.

The Nifty July month contract started the session with a gap-up open at 10,297. After an initial rally, the contract marked an intra-day high at 10,348 and began to decline as it witnessed selling interest at higher levels. It has recorded an intra-day low at 10,246 and found support at 10,250. The near-term stance will remain positive as long as the contract trades above 10,250 levels. A strong rally above 10,280 can push the contract higher to 10,300 and then to 10,330. The next resistances are at 10,350 and 10,375. On the other hand, a decisive fall below 10,250 can bring back selling pressure and pull the contract down to 10,220 and 10,200 levels. Subsequent supports are at 10,175 and 10,150.

Strategy: Go long on a strong rally above 10,280 levels with a fixed stop-loss

Supports: 10,250 and 10,220

Resistances: 10,280 and 10,300

Published on June 26, 2020
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