Monday, June 6, 2022

NIFTY PREDICTION & OPTION CALL PUT TIPS FOR 07 JUNE 2022

Markets traded lackluster and ended almost unchanged amid mixed indications on 6 june 2022. The start was muted on weak global signals, but recovery in metals and selective buying in financials offset any losses. Consequently, the Nifty ended flat at 16,569.55. On the sector front, a mixed trend was observed, with real estate, media and PSU banks being the biggest losers. The broader indices also showed a similar trend and traded mixed. Indian stock benchmarks Sensex and Nifty ended a volatile session with minor cuts on Monday, falling for a second straight session. Gains in metals stocks and a weak recovery in select financials were offset by losses in IT stocks. Broader markets also weakened, with the Nifty Midcap 100 Index down 0.1% but its small-cap counterpart down 1 percent. All eyes are on the outcome of a bi-monthly review by the RBI, due later this week. The prevailing uncertainty on the global front, combined with caution about the outcome of the MPC meeting, is keeping participants on the alert. Signs point to further consolidation in the index so the focus should be on identifying the sectors/stocks and maintaining positions on either side. The market was cautious ahead of this week's credit policy announcement and as a result investors trimmed their positions in interest rate sensitive sectors such as real estate. Technically, the Nifty found support near 16450 but failed to capitalize on it. The chart's texture suggests that range-bound activity is likely to persist in the near term. For day traders, 16450 would be the main support level to look out for and above which the index could rally to 16625-16675. On the upside, a fresh round of selling pressure is possible if the index trades below 16450. Any further decline could see the index retest the 16375-16325 level.

Resistance: 16625, 16675, 116725

Support: 16450, 16375, 16300

 

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