Technical Analysis

Nifty call: Go long on strong rally above 15,820 levels with fixed stop-loss

Yoganand D | Updated on June 14, 2021

Nifty 50 June futures (15,812)

The Sensex and Nifty 50 started the session with a gap-down open and witnessed a sharp fall in the initial hours of trade. But the benchmark indices have recovered from their intra-day low and have trimmed their losses to about 0.15 per cent. The market breadth of the Nifty 50 is biased towards declines.

The India VIX has jumped 5.5 per cent, indicating an increase in volatility. The Nifty mid and small-cap indices are down by 0.7 per cent and 0.4 per cent respectively. Apart from Nifty IT and Pharma, which are hovering in marginally positive territory, gaining 0.2 per cent and 0.3 per cent respectively, the other sectoral indices feature in negative territory. The top losers are the Nifty realty and metal indices that have fallen 0.9 per cent each.

The Nifty June month contract began the session with a gap-down, opening at 15,728. After recording an intra-day low at 15,630, the contract bounced up, recovering the intra-day loss. The contract recorded an intra-day high at 15,837 and tests resistance at 15,820 levels. Traders can take fresh long positions with a fixed stop-loss a strong rally above 15,820 levels. The contract can test the next resistance at 15,850. A further rally above this level can take the contract higher to 15,870 and then to 15,900 levels. On the other hand, key supports below 15,760 are placed at 15,730 and 15,700 levels.

Strategy: Go long on a strong rally above 15,820 levels with a fixed stop-loss

Supports: 15,760 and 15,730

Resistances: 15,820 and 15,850

Published on June 14, 2021

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