Technical Analysis

Nifty call: Short at the current level of 15,460

Akhil Nallamuthu | Updated on: Jun 22, 2022
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Nifty 50 June Futures (15,460): Add more shorts if the contract rallies to 15,560

Following the bearish cues from the Asian markets, the Indian benchmark indices witnessed a gap-down open today. Nifty 50 at 15,480 and Sensex at 52,070 are down by 0.9 and 1 per cent, respectively. Among the Asian majors, Nikkei 225, ASX 200, Hang Seng and KOSPI are down in the range of 0.3 - 2.5 per cent.

The market breadth of the Nifty 50 is showing a bearish bias as the advance/decline ratio stands at 6-44. All the mid- and small-cap indices are down in the range of 0.5-2.5 per cent. Among the sectoral indices, barring the Nifty PSU bank (up by 0.1 per cent), all of them are in the red. The Nifty Metal is the top loser, down by 3.6 per cent followed by the Nifty Consumer durables, which lost 1.7 per cent.

Futures: Like the underlying Nifty 50, the June futures of the index opened today’s session lower at 15,551 compared to yesterday’s close of 15,638. Post opening, the contract fell to mark an intraday low of 15,425 and has recovered a little to the current level of 15,485. The contract is likely to fall from the current level.

But there could be a corrective rally to 15,560. So, traders can plan the trades accordingly. That is, one can short at the current level of 15,460 and add more shorts if the contract rallies to 15,560. Place stop-loss at 15,660. When the contract falls below 15,350, revise the stop-loss to 15,500. Exit all the shorts at 15,250.

Strategy: Short at the current level of 15,460 and add more shorts if the contract rallies to 15,560. Place stop-loss at 15,660. When the contract falls below 15,350, revise the stop-loss to 15,500. Exit all the shorts at 15,250.

Supports: 15,350 and 15,250.

Resistances: 15,560 and 15,650.

Published on June 22, 2022
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