Nifty Call: Desist trading in index futures this session

Nifty 50 June Futures (10,861)

The Nifty and the Sensex began the session in the positive territory, with a gap-up open. Both the benchmark indices continue to hover in the positive territory, despite mixed global cues.

The US markets had ended on a flat note in the previous session and the Asian markets were trading on a mixed note. The Nikkei 225 index advanced 0.4 per cent to 22,966 levels, while the Hang Seng index slumped 1 per cent to 30,768 levels.

The market breadth of the Nifty index is biased towards advances. The Nifty June futures contract started the session with a gap-up open at 10,860. But, after marking an intra-day high at 10,865, the contract began to decline and recorded an intra-day low at 10,831.

Both the June and July month futures contracts are trading at a discount to the underlying Nifty index, showing signs of weakness.

Traders with a short term view should tread with caution as long as this continues. The June month contract is moving sideways in the range between 10,830 and 10,865 levels.

Key resistances above 10,865 are at 10,880, 10,900 and 10,930 levels. A strong rally beyond 10,865 can take the contract higher to the next resistances.

Conversely, if the contract plunges below the immediate support level of 10,830, it can move lower to 10,810 or 10,800 levels. Further fall below 10,800 can drag the contract down to 10,775 and 10,750 levels.

Strategy: In a sideways movement. Desist trading in the index futures this session.

Supports: 10,830 and 10,810

Resistances: 10,865 and 10,880

 

 

 

Yoganand D

 

BL Research Bureau

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