The Nifty call: Nifty 50 June Futures (15,735)

Akhil Nallamuthu | | Updated on: Jun 15, 2022

The market breadth of the Nifty 50 is showing a negative bias

While most of the Asian indices are in the red, the Indian benchmark indices – the Nifty 50 (15,735) and the Sensex (52,720) – opened today’s session flat. Till now for the day both indices have not taken any direction and are trading flat.

Among the Asian majors, ASX 200, Nikkei 225 and KOSPI are down in the range of 0.9-1.9 per cent. In contrast, Hang Seng is up by 1.3 per cent.

The market breadth of the Nifty 50 is showing a negative bias as the advance-decline ratio stands at 22-28. Interestingly, the mid- and small-cap indices are in the green – the Midcap 50 and Smallcap 50 are up by 0.3 and 0.45 per cent, respectively. Among the sectoral indices, the Nifty Auto is top gainer, up by 1 per cent whereas the Nifty Metal is the top loser, down by nearly 0.9 per cent.

Futures: Like the underlying Nifty 50, the June futures of the index opened today’s session flat at 15,739 compared to yesterday’s close of 15,737. Although the overall bias is bearish, the price action shows that the price band of 15,675-15,750 can offer support for Nifty futures. But if at all there is a bounce today, we expect it to be capped at 15,900.

Given the prevailing condition, traders can stay on the fence and initiate fresh short positions when the contract breaches 15,675. Stop-loss can be at 15,775. Exit the shorts at 15,500.

Strategy: Initiate fresh short positions when the contract breaches 15,675. Stop-loss can be at 15,775. Exit the shorts at 15,500.

Supports: 15,675 and 15,500

Resistances: 15,750 and 15,900

Published on June 15, 2022
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