Nifty Fut (June): Will It Break Or Respect H&S---Watch 7940-7860 Zone

Technically, for NF (LTP:7960; SGX NF:7922), immediate support is 7940-7915 & below that it may fall to 7880-7860 zone. Sustain below 7860, it may crash to 7800-7720-7625-7500-7440 zone in the near term under bear case scenario.

On the upside, sustain above 7940, NF may target 8001-8088 & 8160-8225 in the immediate to short term.

In short, consecutive closing below 7940, we may enter into new trading zone of 8000-7440 in lieu of present zone of 8000-8500.

Bottom Line: Technical Trading Levels

		Gap Up/Dw	(Indicative)
SGX NIFTY	7922	-38
				NF-JUNE	LTP			7960
	SL (+/-) 10 POINTS	FROM SLR
	Intraday Swing	Trader
			T1	T2	T3	T4	T5	SLR
Strong >	7880		7915-7940*	7970-8001	8027-8088	8115-8160*	8197-8225	<7860
Weak <	7860		7835-7800*	7750-7720	7700-7650	7625-7600	7545-7500	>7880
FOR	Conservative	Positional	Trader
			T1	T2	T3	T4	T5	SLR
Strong >	7880		7940*	8001	8088	8160*	8225-8260	<7860
Weak <	7860		7800*	7720	7625	7545	7500-7440	>7880

Our market will look into progress & distribution of actual monsoon, which is not so bad till day, although there are apprehensions that due to cyclone formed on Arabian Sea (Oman region), it may be delayed further. But as as par SKYMET, we could see extensive coverage of monsoon by mid June.

Also, today's meeting of Bankers with FM & evening CPI and IIP data will be important. Practically, PSB(s) need massive re-capitalization to stand on their own feet & BASEL-III requirements by 2017.

Also, as par reports, over the years Indian corporates are now heavily indebted into ECB (EURO & USD), which may going to be a headache unless currency is properly hedged.

Looking ahead, forthcoming monsoon session & state elections (specially Bihar) will be important triggers for our market. Any disappointment from there, we may fall for much lower level of around 6500-6300 in the next year instead of 9200-9700 & the whole idea of "Modinomics" will be put on question.

Globally, all eyes are on the ongoing Greece drama & FOMC meeting next week. Any positive clues from there may ignite a short covering rally in our market also.