Technical Analysis

Nifty call: Initiate long positions above 10,150

Akhil Nallamuthu | Updated on June 10, 2020 Published on June 10, 2020

Nifty 50 June futures (10,118)

The Indian benchmark indices, which opened with a gap-up, have been consolidating since the beginning of the session. The Nifty spot and the Sensex spot indices are trading higher by half-a-per cent compared to yesterday’s close. Cues from the Asian markets seem to be mixed as the Nikkei index has closed today with a marginal gain of 0.15 per cent, whereas the Hang Seng index is trading flat.

The market breadth of the Nifty 50 index is neutral as the advances-declines ratio stands at 25-25. The mid-cap and small-cap indices look mixed and among the sectoral indices, the Nifty realty index is the top gainer, up by nearly one per cent. The Nifty media index is the top loser, down by about 1.5 per cent. Volatility seems to have come down by nearly one per cent to 29.9 levels as indicated by the volatility index – India VIX.

The June futures contract of the Nifty index opened marginally higher at 10,076 versus Wednesday’s close of 10,034. After marking an intra-day high of 10,146, the contract is now hovering around 10,120. The near-term trend can be bullish until it stays above the critical support of 10,000. However, for intra-day, 10,150 has been acting as a roadblock for the bulls. Considering these factors, traders can go long if the contract decisively breaks out of 10,150. Stop-loss can be at 10,100. Above 10,150, the contract could rally to 10,200 and 10,250.

Strategy: Initiate long positions above 10,150

Supports: 10,100 and 10,050

Resistances: 10,200 and 10,250

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Published on June 10, 2020
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