Nifty fell sharply in morning trade on June 21 due to a sharp fall in the Asian markets and overnight weakness in US markets.

However, from the intraday low, Nifty recovered 241 points to end the day with a gain of 63 points at 15,746.50.

Last Friday, the benchmark index made a low of 15,450 and bounced back sharply. This support coincides with the previous all-time high level of 11,432 which will interchange its role as a support.

If we draw the upward slopping trendline, adjoining the lows of April 22 and May 14, support comes to around 15,450.

Therefore, we believe that though Nifty fell sharply on Friday and during the early part of Monday, it has not violated important supports of 15,400-15,450 on the closing basis.

Nifty remains in an intermediate uptrend till it is trading above the important support level of 15,400.

While we remain open to further upsides, a short-term trend reversal would be confirmed only if the Nifty closes below 15,400.

For traders, our advice is to remain bullish and accumulate longs on declines with the stop loss of 15,400 on a closing basis.

On the higher side, Nifty is likely to find immediate resistance at 15,770 and 15,900 levels.

We continue to believe that sectors that are looking strongest on the medium to long-term charts and are expected to outperform in the coming weeks are IT, FMCG, pharma and metals.

Nifty Midcap and Smallcap 100 indices have witnessed some correction from their all-time high levels, but their primary trend remains positive.

Nifty Midcap and Smallcap indices have outperformed during this calendar year by rising 28 percent and 36 percent, respectively, against a 13 percent rise in the Nifty.

We expect their outperformance to continue for the coming weeks also. Therefore, the focus of the traders should be on mid and small-caps for higher returns.