Saturday, 24 October 2015

Weekly Outlook for 26th - 30th October

NIFTY

Nifty has closed the week at 8295.45 after making a new high for the month at 8328.10 , with nearly a 57 points gain over last week's close  . Nifty spot has managed to close above 8284 after 40 trading sessions

In our last weekly post we had mentioned that Nifty spot gives a close above 8266 then we can expect a move initially til 8330 and above that till 8430 . This week we saw Nifty make a high just below that at 8328.10. Now Nifty has approached a tough resistane zone and it would be important to see how we react from.

In the last week of this month with expiry also due on Thursday in the Derivatives market Nifty spot will need to give a close above 8321 to confirm uptrend continuation and then one can expect a move till 8378 initially and above that till 8464 . Similarly a close below 8270 can make Nifty test lower levels till 8213 initially and a below that till 8126.

Nifty Spot Levels for the week are

Long above 8321 , Tgt 8335 - 8348 - 8369

IF Nifty spot manages to get 2 consecutive close above 8378 then ,

can test 8389 - 8425 - 8465 

Short below 8270 , Tgt 8255 - 8243 - 8222

IF Nifty spot manages to get 2 consecutive close below 8213 then, 

can test 8203 - 8166 - 8126

One should be cautious with their long positions and profit booking is advised on any move above 8330 till near 8360 . One can reenter long positions on getting 2 consecutive close above 8378 spot . Similarly one can also look at taking small short positions once Nifty is in the range of 8330 - 8360 with a small strictly closing basis stoploss  of 8384 as being expiry week wild swings can hit intraday stoploss and hence it is not advisable.

BANK NIFTY

Bank Nifty spot has closed the week at 17934.05 after making a new high for the month at 17980.50, and closed with nearly a 21 points gain over last week. Bank Nifty spot has been trading weak and just managed to test our weekly long level of 17981 mentioned in the post last week.

In the coming week Bank Nifty spot needs to give a consecutive close above 17981 to confirm uptrend continuation and then one can expect a move till 18141 initially and above that till 18381 . Similarly a close below 17844 can make Bank Nifty test lower levels till 17685 initially and below that till 17444 

Bank Nifty Levels for the week are

Long above 18010 , Tgt 18056 - 18093 - 18157

IF Bank Nifty spot manages to get 2 consecutive close above 18185 then 

can test 18217 - 18327 - 18449

Short below 17858 , Tgt  - 17812 - 17775 - 17710

IF Bank Nifty spot manages to get 2 consecutive close below 17684 then 

can test 17651 - 17540 - 17419

One should be cautious with their long positions and profit booking is advised on any move above 18055 till near 18130 . One can reenter long positions on getting 2 consecutive close above 18185 spot . Similarly one can also look at taking small short positions once Nifty is in the range of 18055 - 18130 with a small strictly closing basis stoploss  of 18200 as being expiry week wild swings can hit intraday stoploss and hence it is not advisable.



Disclaimer : These are my personal views and trades taken on them should be done with a strict Stop loss and also after consulting your financial advisor .