Technical Analysis

Nifty Call: Tread with caution as the contract is range-bound

Yoganand D | Updated on June 03, 2021

Supports are between 15,650 and 15,625 and resistance at 15,700 and 15,725.

BL Research Bureau

Nifty 50 June Futures (15,663)

After a huge gap-up open, the Sensex and the Nifty 50, started to decline from the intraday high recorded in the initial hours. The Asian markets are mixed; the Nikkei 225 has climbed 0.4 per cent to 29,058 whereas the Hang Seng index has tumbled 1.2 per cent to 28,937 levels in today's session. Marginally trimming the intraday gains, the local benchmark indices - Sensex and the Nifty 50 - have advanced 0.3 per cent 0.36 per cent respectively. The market breadth of the Nifty 50 is biased towards advances. The India VIX has plummeted 9 per cent to 15.66 levels implying decrease in volatility. On the back of buying interest, the Nifty mid and small-cap indices have advanced 1 per cent and 1.2 per cent respectively. Among the sectoral indices, the Nifty Auto, IT and Pharma are down by 0.2 per cent each. Whereas buying interest is seen in the Nifty Realty and Media sectoral indices that have jumped 3.7 per cent and 1.5 per cent correspondingly.

The Nifty June month contract started the session with a gap-up open at 15,689 against the previous close at 15,616 levels. After recording an intraday high at 15,704 the contract began to decline. It has recorded an intraday low at 15,659 levels. An immediate support is at 15,650 levels. A fall below this level can pull the contract down to 15,625 and then to 15,600 levels. The vital resistance at 15,700 can limit the rally. Hence, traders should tread with caution as long as the contract is range bound between 15,650 and 15,700 levels. Resistances above 15,700 are placed at 15,725 and 15,760 levels.

Strategy: The contract is range-bound. Tread with caution

Supports: 15,650 and 15,625

Resistances: 15,700 and 15,725

Published on June 03, 2021

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