Thursday, 5 May 2016

Nifty & Bank Nifty Spot Outlook for 06th May

Nifty spot opened at 7731 made a high at 7777.55 , went down till 7706.85 before closing at 7735.50 . We had mentioned that long positions can be taken above 7729 and short positions can be taken below 7684 for the day .Today Nifty triggered a long trade and completed more than 2 targets on the long side giving around 45 points  . Today Nifty did made a low quite near the previous days close . Now if we do not sustain below 7697 low of this week then may see a reversal from around 7678 levels tomorrow . Also tomorrow is gann date and also the weekly close . As per our weekly outlook further correction in Nifty is possible on sustaining below 7703 spot and it seems to be taking support around these levels hence the change in view . If tomorrow we sustain above 7769 - 7787 we can see a good move on the upside . Similarly if we sustain below 7703 we may a test of 7678 - 7638 .
We can expect a good trending move tomorrow on both Nifty and Bank Nifty whichever side we move.

For today Nifty spot has resistance on the upside near 7750 - 7761 , sustaining above 7780 is required to test 7809 - 7824 levels . Similarly Nifty spot has support on the downside near 7721 - 7710 , breaking and sustaining below 7692 we can test 7662 - 7648 levels.

Nifty Spot Levels for the day are

Long above 7759 for 7774 - 7791 - 7836 , SL 7728

Short below 7712 for 7697 - 7680 - 7635 , SL 7743

BANK NIFTY


Bank Nifty spot opened at 16292.40 , made a high of 16398.25 , went down till 16193.70 before closing at 16281 . We had mentioned long positions can be taken above 16335 and short positions can be taken below 16213 for the day.  Bank Nifty triggered a short trade and got stopped out and then triggered a long trade and completed just1 target on the long side giving around 60 points . As per our weekly outlook Bank Nifty has now completed nearly all our targets below 16695 , only our last target of 16108 is pending now which may come tomorrow only if we sustain below 16189 spot . Those who are holding shorts can close their position tomorrow if we break or sustain above 16341. Bank has been underperforming Nifty for the past few sessions and can outperform tomorrow being a gann date. Incase Bank Nifty begins to outperform use TSL to hold .

Bank Nifty Spot Levels for the day are

Long above 16341 for 16378 – 16420 – 16534 , SL 16299

Short below 16221 for 16184 – 16142 – 16028 , SL 16262

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