Technical Analysis

Nifty Call: Sell on rallies with stop-loss at 10,260 levels

Yoganand D BL Research Bureau | Updated on June 25, 2020 Published on June 25, 2020

Nifty 50 June Futures (10,212)

Tracking the weak global cues, the Sensex and Nifty began the session with a gap-down open. The US indices, Dow Jones and S&P 500 slumped 2.7 per cent and 2.6 per cent in the last session. The Nikkei 225 fell 1.2 per cent to 22,259 and Hang Seng index declined 0.5 per cent to 24,781 levels in today's session. Following an initial recovery, Sensex encountered a key resistance at 35,000 and Nifty had met with a resistance at 10,350. Thereafter both the benchmark indices began to decline witnessing selling interest. The market breadth of Nifty index is biased towards declines. The India VIX- fear index had rallied 1.5 per cent to 29.9 levels. Both Nifty mid- and small-cap indices have entered the negative territory. The Nifty FMCG and Pharma are hovering in the green, gaining 0.7 per cent and 0.3 per cent respectively. Top losers are Nifty Bank and Nifty PVT Bank, which slumped 1.2 per cent each.

The Nifty June month commenced the expiry session with a gap-down open at 10,196. After an initial rally, the contract had encountered a key resistance at around 10,350 and began to decline on the back of selling interest. The contract declined below 10,300 levels. Near-term outlook will remain bearish as long as the contract trades below 10,250 levels. Traders can make use of intra-day rallies to go short with a fixed stop-loss at 10,260 levels. A decisive fall below 10,200 can pull the contract down to 10,180 and then to 10,150 levels. Subsequent supports are at 10,125 and 10,100. Key resistances above 10,250 are at 10,280 and 10,300.

Strategy: Sell on rallies while maintaining a stop-loss at 10,260 levels

Supports: 10,200 and 10,180

Resistances: 10,250 and 10,280

Published on June 25, 2020
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