After Fridays close Nifty gave a follow up move today and closed at 8275 after making a high of 8283 . Nifty closed well above 8266 which can lead to a gap up tomorrow and it would be interesting to see if Nifty can break above 8300 and test the resistance at 8321 - 8330 as mentioned in our outlook for this week . If a breakout has actually taken place on the upside it should get confirmed in the next days , most probably tomorrow with a close above 8330 .Also tomorrow is a gann turn date and it would be interesting to see how we close. Today Nifty closed higher mainly due to out performance of Reliance after it posted a better than expected results. If Nifty spot takes resistance near 8330 levels tomorrow then we may see a retest of 8210 - 8155 .
Bank Nifty also opened with a slight gap up but could not sustain above Fridays high and also did not trigger our long level and slipped down to close the day at 17855 nearly 57 points down from Fridays close on a day when Nifty gave a good close .We had mentioned that consecutive close above Fridays close is required to confirm further upmove in bank nifty. Bank Nifty today tested its previous resistance now turned support level of 17827 and reversed from there today . Breaking and closing below that level we would see lower levels.
For tomorrow Nifty spot has initial resistance at 8290 - 8321 levels , breaking and sustaining above it Nifty can test 8351 - 8366 levels . Similarly Nifty spot has initial support at 8260 - 8230 levels , breaking and sustaining below it Nifty can test 8199 - 8184 levels. Today was a slow day and Nifty gave us 30 points once long call got initiated . Bank Nifty did not give any long call but a short call towards the end which did not allow a chance to initiate trade as Nifty was in the opposite direction.
Levels for tomorrow are
Long above 8287 for 8305 – 8325 – 8349
Short below 8263 for 8244 – 8226 – 8201
Bank Nifty Spot
Long above 17925 for 17950 – 17975 – 18115
Short below 17785 for 17760 – 17735 – 17600
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Disclaimer : These are my personal views and trades taken on them should be done with a strict Stop loss .