Nifty call: Stay out of the market

Gurumurthy K |BL Research Bureau | | Updated on: Jun 27, 2022

One can wait and watch as what is happening to the 15,800-15,780 support zone and then can take trades accordingly

Domestic benchmark indices have opened with a gap-up on Monday and are trading higher. Both the Sensex and Nifty 50 are up over one per cent each. Sensex is at 53,285, while Nifty is at 15,870 in early trade.

Nifty has risen above 15,800. A subsequent rise past 15,900 will pave way for a further rise to 16,000 and 16,200. Sensex on the other hand will now have support at 53,000 and a test of 54,000-54,500 is possible in the near-term.

All the major Asian indices are trading strong. Nikkei 225 (26,911), Shanghai Composite (3,386), Kospi (2,416) and Hang Seng (22,299) are all up in the range of 1.1 to 2.6 per cent. In the US, the Dow Jones Industrial Average (31,500.68) had surged 2.68 per cent on Friday. It will have to be seen if this bounce back in the global equities will sustain or not.

Futures

The Nifty 50 June (15,870) Futures is also up over a per cent today. The contract made a high of 15,930 and has been coming down.  Intraday supports are placed slighter far-away at 15,800 and 15,780. The chances of a dip to test these supports during the day cannot be ruled out. If the contract manages to hold above the above-mentioned supports, the outlook will remain bullish. A bounce from 15,800-15,780 can take the contract up to 16,000 this week. On the other hand, if the contract breaks below 15,780, it can fall to 15,600-15,500. As such the price action around 15,800-1,5780 will need a close watch.

Traders can stay out of the market today. One can wait and watch as what is happening to the 15,800-15,780 support zone and then can take trades accordingly.

Trading Strategy: Stay out of the market.

Supports: 15,800 and 15,780

Resistances: 15,930 and 16,000

Published on June 27, 2022
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