Saturday, 21 May 2016

Weekly Spot Outlook for Nifty & Bank Nifty for 23rd to 27th May

NIFTY

This week Nifty spot went up 125 points over last weeks close and finally ended the week with a loss of around 65 points compared to last weekly closing 

Last week we had mentioned that long positions in Nifty can be taken above 7854 and short positions can be taken below 7776 . Nifty made a high of 7940.10 and low of 7735.75 for the week. This week Nifty triggered a long call on Monday and completed 3 targets on the long side giving us nearly 80 points from our long trade. Further upmove as mentioned in the weekly post was possible on closing / sustaining above 7945 and Nifty reversed from 7940 . Nifty after taking resistance near 7945 reversed and triggered on Short trade on Thursday and completed nearly 2 targets on the short side giving nearly 40 points on the short side.Those of who would have gone short near the resistane of 7945 would have gained 200 points on the down move. 


In the coming week Nifty spot needs to break and sustain above 7800 to confirm uptrend and then one can expect a move till 7852 initially and breaking and sustaining above 7866 will give further confirmation for the next move which can take us till 7961. Similarly Nifty spot needs to break and sustain below 7700 to confirm downtrend and then one can expect a move till 7647 initially and breaking and sustaining below 7634 will give further confirmation for the next move which can take us till 7538.


Nifty Spot Levels for the week are

Long above 7781 , Tgt  7800 - 7815 - 7831

IF Nifty spot manages to get a close / sustain above 7852 then ,

long again for 7866 - 7911 - 7961

Short below 7719 , Tgt 7700 - 7684 - 7669

IF Nifty spot manages to get a close / sustain below 7647 then, 

short again for 7634 - 7588 - 7538



BANK NIFTY

This week Bank Nifty spot went up 186 points over last weeks close and finally ended the week with a loss of 235 points compared to last weekly closing  

Last week we had mentioned that long positions in Bank Nifty can be taken above 16825 and short positions can be taken below 16608 spot . Bank Nifty made a high of 16903 and a low of 16431 . This week Bank Nifty triggered a short call on Monday and completed all 3 initial targets on the short side giving around 175 points. It then recovered from there to trigger our long trade and did 1 target just 10 points above our confirmation level which was highlighted in yellow but could not sustain giving early indication that it could correct again . Bank Nifty triggered our TSL at cost the same day and triggered our short call again the next day and nearly completed our 3 targets again giving around 150 points on short side. Bank Nifty gave us nearly 325 points total from our shorts trades triggered this week . Bank Nifty was more volatile due to huge losses posted by a few PSU banks based on higher provisioning for NPA's and clearing of their balance sheets .

In the coming week Bank Nifty spot needs to break and sustain above 16593 to confirm uptrend and then one can expect a move till 16711 initially and breaking and sustaining above 16741 will give further confirmation of the next move which can take us till 16954 . Similarly sustaining or closing below 16370 can make Bank Nifty test lower levels till 16252 initially and breaking and sustaining below 16222 will give further confirmation of the next move which can take us down till 16009.

Bank Nifty Spot Levels for the week are

Long above 16550 , Tgt 16593 - 16627 - 16662

IF Bank Nifty spot manages to get a close / sustain above 16711 then 

long again for 16741 - 16842 - 16954

Short below 16413 , Tgt 16370 - 16335 - 16301

IF Bank Nifty spot manages to get a close / sustain below 16252 then 

short again for 16222 - 16120 - 16009


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 .

To view my initial previous posts of 2015 kindly go to :-
 https://simplytradestocks.wordpress.com