Analyst Somesh View - Closing Comments on 16th JUNE 2021

2021-06-16 17:18:16 By Somesh

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Nifty formed a bearish candle on the daily chart as the closing was lower than opening level and Nifty wiped out all the gains of the last few sessions.

Nifty opened lower at 15847 and attempted a bounce back to hit a day's high of 15880, but immediately fell and traded lower for the rest of the session to hit an intraday low of 15742. Nifty fell 101 points to close at 15767.

Nifty traded lower for the majority of the session and finally settled with more than half a percent loss amid selling in metals, banking & financials, auto and pharma stocks.

For the short term traders, an aggressive trade has not triggered yet for the Index while stock specific move continues; advice keeping a check on leveraged positions. For investors, the broader sentiment remains positive with buying on meaningful dips advisable. 

Any correction on account of the FED meet outcome remains an opportunity to accumulate. IT and FMCG remain strong while select BFSI stocks can be bought at current levels.

Nifty appears to have triggered a corrective downswing as it registered a bearish candle after three consecutive indecisive formations. Hence, the next session is going to be critical for bulls as their failure to defend 15749 level shall drag down the index towards 15600 level, which as of now, appears to be the lower end of the broader consolidation zone placed between 16000 /15600 level.

If bears manage to break this support of 15600 level on a closing basis, a directional move on the downside shall occur.

Contrary to this, as markets are sloshed with liquidity flows and awaiting Federal Reserve outcome which is capable of influencing the market in the short term. If bulls manage to defend 15749, the market may again make an attempt to rally towards 16000 level.

Traders to avoid long side bets. Intraday Traders can short below 15740 level for a target towards 15600 by placing a stop above intraday high.

Sector Wise :- Except IT and FMCG, all other indices ended in the red with metal index falling nearly 3 percent and infra index losing 1.2 percent.


Closing Comments