Wednesday, 20 July 2016

Nifty & Bank Nifty Spot Outlook for 21st July

NIFTY


Nifty spot opened  at 8515.45,  made a low of 8512.55 , went up till 8569.90 before closing at 8565.85 . We had mentioned that long positions can be taken above 8549 and short positions can be taken below 8509 for the day . Nifty triggered our long trade and missed completing our 2nd target by 5 points .  After seeing the pullback towards the end of session in the previous day, today we were waiting to see if we could again break our resistance zone of 8556 - 8575 for this month where we have been seeing profit booking so far and also if Nifty can trigger our weekly long level of 8595 on closing basis . But Nifty failed to break above the resistance zone . Have been mentioning in the previous posts ' Those who are holding positional longs on closing above 8454 spot , should now be cautious if resistances are not broken and if still holding should do so with TSL at 8488 closing basis '  . Longs are safe as long as we are closing above 8488 but we now need a break above 8595 to begin the next upmove and failing to do so will keep adding pressure to go down towards breaking 8488 and testing lower levels till 8400 . As mentioned previously fresh longs should be entered only on consecutive close above 8575 or near 8400 with 8390 as cbsl . Also one can expect a test of 8630 - 8651 once we break above the current resistance and those going short around 8650 should do so with a strict cbsl of 8673 spot . 

Trend reversal in Nifty for this series would be consecutive closing below 8122 and trend continuation would be on consecutive close above 8454 spot . 

For today if Nifty spot sustains above 8586 we can see a initial move upto  8607 & on sustaining above 8612 we may see further upmove till 8650. Similarly if Nifty spot sustains below 8546 we may see a initial move on the downside upto 8525 & on sustaining below 8520 we may see a further downmove till 8481


Nifty Spot Levels for the day are

Long above 8586 for 8598 - 8612 - 8650 , SL 8560

Short below 8546 for 8534 - 8520 - 8481 , SL 8572


BANK NIFTY


Bank Nifty spot opened at 18896.80, made a low of 18886.30 , then went up till 19016.25 , before closing at 18968.20 . We had mentioned long positions can be taken above 18965 and short positions can be taken below 18845 for the day.  Bank Nifty triggered our long trade and completed just 1 target  . Towards the end of session we saw Nifty making a new high for the day but today once again Bank Nifty did not do the same . It could also be because Bank Nifty had been outperforming Nifty over the past few sessions.  Have been mentioning in the previous post that since we are sustaining above our resistance zone of 18735 - 18831 'Now we are headed to the next resistance levels of 18947 - 19155 where it may face the next resistance'. We can expect further upmove if Bank Nifty breaks and sustains above these levels .  Those who are holding positional longs should now be cautious if resistances are not broken and should move their TSL to 18790 on closing basis . Had mentioned in the last post that 'Bank Nifty has outperformed for the last few days and we may see a small correction come if we do not get a consecutive close above 19155' . As of now Bank Nifty has support near 18620 -18520 if we break below 18790 spot . On breaking and sustaining above 19155 we can see a test of 19240 - 19350 spot levels. We may see one big move come on the Bank Nifty in the next few days after the 200 point range of the last 2 days in which it has been moving.

Trend reversal in Bank Nifty for this series would be consecutive closing below 17500 and trend continuation would be on consecutive close above 18371 spot . 

For today if Bank Nifty spot sustains above 19029 we can see a initial move upto 19092 & on sustaining above 19108 we may see further upmove  till 19224. Similarly if Bank Nifty spot sustains below 18908 we may see a initial move on the downside upto 18844 &  on sustaining below 18828  we may see further downmove till 18713

Bank Nifty Spot Levels for the day are

Long above 19029 for 19066 – 19108 – 19224 , SL 18950

Short below 18908 for 18871 – 18828 – 18713 , SL 18987

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