Thursday, 21 July 2016

Nifty & Bank Nifty Spot Outlook for 22nd July

NIFTY


Nifty spot opened  at 8582.70,  made a high of 8585.25 , went down till 8503.45 before closing at 8510.10 . We had mentioned that long positions can be taken above 8586 and short positions can be taken below 8546 for the day . Nifty missed triggered our long trade at opening and went down to trigger our short trade and completed 2 targets giving around 36 points . If anyone would have gone short when long trigger was missed with 8586 as SL would have got better points . Nifty has not been able to break and close above our resistance level of 8556 - 8575 so far and has been witnessing selling coming in aroung those levels . As have been mentioning in the previous posts too ' 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 '  . Also as mentioned previously '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' .  We should see support coming near 8390 - 8363 levels on Nifty spot once we break and sustain below 8488 - 8476 spot levels .Those looking to go long around these levels should do so with a cbsl of 8363 spot. A test of 8630 - 8651 is possible only once we break and close above the current resistance zone . 

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 8532 we can see a initial move upto  8555 & on sustaining above 8561 we may see further upmove till 8602. Similarly if Nifty spot sustains below 8488 we may see a initial move on the downside upto 8466 & on sustaining below 8460 we may see a further downmove till 8418


Nifty Spot Levels for the day are

Long above 8532 for 8545 - 8561 - 8602 , SL 8503

Short below 8488 for 8475 - 8460 - 8418 , SL 8517


BANK NIFTY


Bank Nifty spot opened at 18967.40, made a high of 19000.30 , then went down till 18644.55 , before closing at 18674.30 . We had mentioned long positions can be taken above 19029 and short positions can be taken below 18908 for the day.  Bank Nifty triggered our short trade and completed all our targets giving around 200+ points  . Had mentioned yesterday that even though Nifty had been recovering towards the end in the last 2 sessions and making new highs but Bank Nifty had not been able to do the same as it had already been outperforming since many days .  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' . Bank Nifty high so far is 19158 this month . Had also mentioned in the previous post 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'  which has been triggered . Also as mentioned before Bank Nifty now has next support near 18620 -18520 if we break below 18790 spot . Only on breaking and sustaining above 19155 we can see a test of 19240 - 19350 spot levels. Consecutive closing below 18620 - 18520 can open doors upto 18370 - 18200 where we may look to long with a cbls of 18200. 

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 18748 we can see a initial move upto 18826 & on sustaining above 18846 we may see further upmove  till 18987. Similarly if Bank Nifty spot sustains below 18601 we may see a initial move on the downside upto 18523 &  on sustaining below 18503  we may see further downmove till 18362

Bank Nifty Spot Levels for the day are

Long above 18748 for 18794 – 18846 – 18987 , SL 18652

Short below 18601 for 18555 – 18503 – 18362 , SL 18697

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