Technical Analysis

Nifty call: Go long with stop-loss at 10,230

Akhil Nallamuthu | Updated on June 08, 2020

Both the Nifty and Bank Nifty indices fell sharply before the tech glitch could be resolved Paul Noronha   -  Paul Noronha

Nifty 50 June futures (10,280)

The benchmark indices i.e. the Nifty spot and the Sensex spot indices are trading with a bullish bias. While the Nifty spot index is up by 1.5 per cent, the Sensex spot index is up by 1.3 per cent. The Asian indices are giving positive cues; the Nikkei index closed today’s session with a gain of 1.3 per cent. The Hang Seng and Shanghai composite index are up by 0.2 per cent and 0.3 per cent, respectively.

The market breadth of the Nifty 50 index is biased towards bulls as the advances-declines ratio is at 39-11. Following the benchmark indices, all the mid-cap and small-cap indices, too, are in the green. Barring the Nifty pharma index (down by 0.8 per cent), all the sectoral indices have gained so far. The Nifty PVT Bank index is the top gainer, up by 3 per cent, followed by the Nifty Bank index, up by 2.6 per cent. Even as the market has rallied, volatility has shot up today. India VIX, the volatility index has gone up by 2.2 per cent to 29.3 levels.

The June futures contract of the Nifty index, after opening with a gap-up, has been moving within a tight range. The contract opened at 10,293 compared to Friday’s closing price of 10,145. After registering an intra-day high of 10,318, it is now trading at 10,280. The contract could stay bullish while it stays above the intra-day low. So, traders can go long in the contract with stop-loss at 10,230.

Strategy: Go long with stop-loss at 10,230

Supports: 10,230 and 10,180

Resistances: 10,335 and 10,400

Published on June 08, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor