Nifty Trade Setup for 16th June - Expiry day Trade Ssetup

The US Federal Reserve announced a 75-basis point rate hike on Wednesday, leaving the doors open for another rate increase of that magnitude, and US Markets rallied as investors looked favourably on the central bank’s tougher stance against inflation. The rate hike is in line with the expectations and has already been factored in and we can expect VIX to go down today.

Intra-day
After a sharp fall on expectations of a rate hike by the Fed, Index took support at 15,650 and is trading in the range of 15,650 – 15,850 with high volatility and a range break is required for a good move with momentum in either direction, else we may see a rangebound expiry today. The index is currently in the pullback phase after an impulsive down-move and can face resistance at 16,080 and 16,180 (Half Bat Pattern). Index is likely to open with a gap up around resistance and we will wait for 30-45 minutes before making any positions.