Stock

Nifty Call: Go short on fall below 15,200 with fixed stop-loss

Yoganand BL Research Bureau | Updated on May 25, 2021

Resistances placed at 15,325 and 15,350 levels

Nifty 50 May Futures (15,213)

The Nifty 50 and the Sensex commenced the session with a gap-up open and started to decline from the intraday high, witnessing minor correction. The Nikkei 225 gained 0.7 per cent to 28,553 and Hang Seng index surged 1.6 per cent to 28,884 levels in today’s session. Trimming the intraday gains, the Sensex and the Nifty 50 have fallen and for the day so far the two are down by 0.02 per cent and 0.12 per cent respectively. The market breadth of the Nifty 50 is biased towards advances. India VIX has fallen 1.5 per cent to 18.8, implying decrease in volatility. Both the Nifty mid- and small-cap indices have gained 0.2 per cent and 0.5 per cent respectively. Selling interest is experienced in the Nifty Bank as the Nifty PSU Bank and Nifty PVT Bank indices, which have declined 1 per cent and 0.77 per cent correspondingly. Top sectoral gainers are Nifty media and metal that have gained 3.8 per cent and 1.2 per cent respectively.

The Nifty May month contract began the session with a gap-up open at 15,281 against the previous close of 15,202 levels. After recording an intraday high at 15,299, the contract started to decline. The key resistance at 15,300 is capping the upside. A plunge below 15,200 will alter the bullish stance and pull the contract down to 15,180 and then to 15,150 levels. On the upside, a strong rally above 15,250 can take the contract higher to 15,270 and then to 15,300 levels. Subsequent resistances are placed at 15,325 and 15,350 levels.

Strategy: Go short on a strong fall below 15,200 with fixed stop-loss

Supports: 15,200 and 15,180

Resistances: 15,270 and 15,300

 

 

Published on May 25, 2021

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