Analyst Somesh View - Closing Comments on 9th JUNE 2021

2021-06-09 18:26:18 By Somesh


Nifty  formed a strong bearish candle on a daily chart as it engulfed the price recovery of the last four sessions and negated its formation of higher lows of the last four trading sessions.

Nifty erased all intraday gains to fall from a fresh record high of 15800 on selling across sectors.

Rupee traded in a small range with the weak tone, around 72.95 compared to 72.89 yesterday. Higher crude prices with stable dollar prices since few days kept rupee rise at check near 72.80 zones. 

Going ahead US CPI data will play a vital role in the movement of the dollar index which will affect the USDINR pair. The range of the rupee can be between 72.75-73.25 in coming sessions ahead.

Strength in the market shall not be expected unless Nifty closes above 15800 level. Therefore, Traders with a high risk appetite are advised to create positional shorts on a pull back with a stop above 15800 on a closing basis and look for targets close to 15400.

However, the trend continues to remain positive as Nifty has not broken 15600 on a closing basis. Traders can utilize this drop as an opportunity to accumulate long positions on the index for higher targets of 15900/16000.
Index will now have to cross and hold above 15600 zones to witness an upmove towards 15750 or fresh lifetime highs.

All sectoral indices ended in the red with auto, infra and PSU Bank indices drropping 1 percent each. Midcap and Smallcap indices lost 0.7-1 percent.

Bank Nifty formed a Bearish candle on a daily chart with a long upper shadow and continues its formation of lower highs from the last three sessions.

Bank Nifty opened positive but cascaded down to 34641 level. Banking stocks gained some strength initially but weakness pulled the index to close with losses of around 285 points. 

Bank Nifty has to hold above 34750 zones to witness an up move towards 35250/35545 zones while on the downside support exists at 34629/34287 level.

Closing Comments

Expert's View

నేను వేసుకున్న కోటు రంగు , రానున్న రోజుల్లో మార్కెట్ల రంగు ఇదేనా ?