By Rajesh Palviya
NSE Nifty 50 index began the week with an upward hole and shopping for momentum for many a part of the week led it to shut on a powerful word. Nifty 50 closed at 15699 with a acquire of 406 factors on a weekly foundation. On the weekly chart index has shaped a bullish candle and remained restricted inside earlier week’s High-Low vary indicating lack of power on both facet.
The chart sample means that if Nifty crosses and sustains above 15800 degree it could witness shopping for which might lead the index in the direction of 15900-16200 ranges. However if the index breaks under 15600 degree it could witness promoting which might take the index in the direction of 15400-15200. For the week, we count on Nifty to commerce within the vary of 16200-15400 with combined bias. The weekly power indicator RSI is shifting downwards and is quoting under its reference line indicating detrimental bias.
Nifty Bank Outlook
Bank Nifty began the week with an upward hole and shopping for momentum for many a part of the week led it to shut in constructive territory. Bank Nifty closed at 33627 with a acquire of 884 factors on a weekly foundation. On the weekly chart index has shaped a bullish candle and remained restricted inside earlier week’s High-Low vary indicating lack of power on both facet.
The chart sample means that if Bank Nifty crosses and sustains above 33800 degree it could witness shopping for which might lead the index in the direction of 34200-34600 ranges. However if the index breaks under 33300 degree it could witness promoting which might take the index in the direction of 33000-32500.
For the week, we count on Bank Nifty to commerce within the vary of 34600-33300 with a detrimental bias. The weekly power indicator RSI is in detrimental terrain and sustaining under its reference traces indicating detrimental bias.
Sectors and shares in focus this
We count on the Automobile, Pharma, Capital Goods, Banking, Real Estate sectors could present shopping for curiosity. Stocks like Mahindra & Mahindra (M&M), Eicher Motors, Hero MotoCorp, PVR, Suntek Realty, Shriram Transport Finance, Bajaj Finance could present power in coming days.
Nifty 50 buying and selling technique for thirtieth June month-to-month expiry
The technique which we’re suggesting for this month-to-month expiry dated thirtieth June is a Moderately Bullish technique known as as Call Ratio Spread, which includes Buying of 1 lot of Nifty 15,700 Call @ 158 & promoting of two a lot of 15,950 Call @ 55. The value of the technique includes outflow of Rs 2,500 which is the utmost loss if Nifty trades & stays under 15,750 ranges on expiry. The most revenue of Rs 10,000 will likely be attained above 15,950 ranges, whereas technique will begin making loss if Nifty crosses 16,150, therefore it’s advisable to exit the technique in complete to keep away from limitless losses above 16,150.While the technique will likely be worthwhile within the vary of 15800 to 16100.
(Rajesh Palviya, VP – Research (Head Technical and Derivative) at Axis Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”