Sunday, 4 October 2015

Outlook for 05th October

Nifty spot closed almost flat with a 2 point gain after opening gap up and crossing 8000 for the 3rd time since 01st September but could not sustain above it . Nifty made a low of 7930.65 just below our Shorting level of 7932 but did not sustain there either  . So overall we did not get any good trading opportunities.

Bank Nifty has been underperforming since the last couple of days and is moving in a range of 350 points between 17100 - 17450,  breaking on either side should be watched for a move in Nifty too.

On the global front US markets closed in good green after recovering smartly from the days low . China market is also closed till 7th Oct . So it would be interesting to see how we open tomorrow.

Tomorrow Nifty spot on breaking above today's high , we can expect a retest of 8055 which is the high of September month and also a crucial resistance level . One should be cautious with their long positions intraday in the range of 8023 - 8068 where selling pressure has been witnessed in the past . We are expecting the current upmove  to get saturated near 8090 incase 8055 is crossed and sustained.

As long as Nifty is trading above 7862 there is a chance to testing last months highs before a correction. Breaking below 7820 one can expect a retest of 7775 - 7747 where initial support can come in .

Levels for tomorrow are

Nifty Spot

Long above 7967 for 8015 – 8030 – 8045 , SL 7930

Short below 7930 for 7887 – 7871 – 7855 , SL 7967

Bank Nifty Spot

Long above 17246 for 17320 – 17416 – 17511 , SL 17055

Short below 17055 for 16980 – 16885 – 16789 , SL 17246


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Disclaimer : These are my personal views and trades taken on them should be done with a strict Stop loss .