Sunday, 31 January 2016

Weekly Outlook for 01st to 05th February

NIFTY

Nifty spot went up nearly 153 points over last weeks close and finally ended this week with a gain of 141 points over last weeks close 

Last week we had mentioned that Nifty can be longed above 7476 and Nifty went up till 7575 and completed nearly 3 targets giving nearly 100 points on the long side . Nifty gave a good move on Friday and also gave a close above the buying level and closed at 7563 (which was our second resistance for the week as mentioned in our previous weekly post) with a gain of 140 points compared to the previous week . Last week we had mentioned that Nifty has formed some base near 7240 for now and as long as we close above 7336 we can head higher. Now Nifty has taken support higher near 7400 and breaking and closing below it should be watched for selling to emerge again . This week we can expect resistance near 7655 and 7776 and support near 7472 & 7350 .


In the coming week Nifty spot needs to break and sustain above 7655 to confirm uptrend and then one can expect a move till 7751 initially and breaking and sustaining above 7776 will give further confirmation for the next move which can take us till 7951 . Similarly breaking and sustaining below 7472 can make Nifty test lower levels till 7375 initially and breaking and sustaining below 7350 will give further confirmation for the next move which can take us till 7176.


Nifty Spot Levels for the week are

Long above 7620 , Tgt  7655 - 7683 - 7732

IF Nifty spot manages to get a close or sustain above 7752 then ,

long again for 7776 - 7860 - 7951

Short below 7507 , Tgt 7472 - 7444 - 7395

IF Nifty spot manages to get a close or sustain below 7375 then, 

short again for 7350 - 7267 - 7176



BANK NIFTY

Bank Nifty gained nearly 185 points this week over last weeks close and finally closed this week with a gain of 25 points over last weeks close. 

Last week we had mentioned that Bank Nifty can be longed above 15675 and Bank Nifty gained till 15682.65 but could not cross the confirmation level of 15780 and stayed in a tight trading range without triggering our short call . Bank Nifty has under performed the Nifty greatly this week and it should be closely watched as it has a lot of catching up to do to get in sync with the Nifty move . Incase Bank Nifty does not participate then it can play spoil sport to further upmove in Nifty this week .

In the coming week Bank Nifty spot needs to break and sustain above 15748 to confirm uptrend and then one can expect a move till 15986 initially and breaking and sustaining above 16046 will give further confirmation of the next move which can take us till 16475 . Similarly sustaining or closing below 15297 can make Bank Nifty test lower levels till 15058 initially and breaking and sustaining below 14998 will give further confirmation of the next move which can take us down till 14570 .

Bank Nifty Spot Levels for the week are

Long above 15662 , Tgt 15748 - 15817 - 15936

IF Bank Nifty spot manages to get a close or sustain above 15986 then 

long again for 16045 - 16252- 16475

Short below 15383 , Tgt 15297 - 15227 - 15108

IF Bank Nifty spot manages to get a close or sustain below 15058 then 

short again for 14998 - 14793 - 14570


P.S. Always wait for the yellow highlighted levels to be crossed after taking a long/short position for confirmation of the trade . Once the highlighted levels are crossed and the next target is achieved move your Stoploss to the highlighted levels .

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