MTECHTIPS Nifty this week closed with strong gains. This was
second gaining week for market and recovery rally continues.
This week nifty hit low around 7761 while high was at 8055.
Total almost 300 points rally from bottom and nifty closed with
gain on value buying as well as short covering. On weekly chart,
8155 and then 8275 are strong resistances of major averages.
While on daily chart, 8085 is major resistance zone of monthly
pivot point. Below it, every upside is only recovery move.
Market trend will change above 8085 on closing basis until then
traders can rise these recovery rallies with strict stop loss in
place. For next week, nifty resistances 8085 and then 8150.
While on downside, 7890 is near term trend support and reentry
zone for fresh buyers. Below 7890, next major support will be
7630. Friday�s nifty closing created bearish bar pattern and
suggesting correction, which may be buying opportunity for
traders those missed previous run. From medium to long-term
view, nifty is heading towards targets 8600-8700 levels if holds
previous 7550 bottom. For next week, future traders can buy
nifty future on correction around 7850-7890 zone with stop loss
7700 for target 8085. While option traders near 7850 can, buy
7800 Oct call options for big gains with same stop loss of 7700
spot. (7983) for this week...946 a nearest support where buying
support will be seen. Up 8059 & 8098 crucial resis up to which
profit booking will be seen. In better scenario a close above
8098 only it'll surge up further to 8198 & 8211. Down break
below 7946 it'll fall down to 7912 & 7878 initially. In worst
scenario a close below 7878 it'll heavily fall down to 7849,
7824 & 7785.
MTECHTIPS Bank nifty spot this week closed with huge gains. This
was second gaining week for this index and short covering rally
continues. This week bank nifty touched its 3-month average
level and given closing just below it. This week bank nifty hit
high around 15600 and low was around 16525. Total 1100 points
sharp rally was seen in this week. In 2 weeks period bank nifty
rallied by almost 2000 points from bottom. On upside 17640 spot
is strong monthly pivot point resistance and below it trend is
down but outlook is bullish as value buying may continue ahead.
For next week, bank nifty spot strong resistance zones are 17640
and 17750. On downside expect support around 17100 and then
16650.From medium to long term view, bank nifty is heading
towards target of 18960. 15700 is bottom support and stop loss
for investors. Future traders can buy bank nifty future on
correction around 16650-16800 zone with stop loss below 16k for
target 17640+. While option traders can buy 17000 call options
of Oct expiry if bank nifty index comes around above given
levels with same stop loss for big gains. For market, strategy
must be buy on major decline with stop loss. Volatility will
remain high in near term and market will give many more chances
of profitable trades . (17409) for this week...17661 & 17805
crucial resiss up to which profit booking will be seen on higher
levels. Down 17366 a nearest support break below which it'll
fall down to 17220 & 17159-17072 initially. In worst scenario a
close below 17072 it'll crash down to 16798 & 16717-16637. Up a
close above 17805 it'll surge up further correctively to 18182 &
(26219) for this week...26100 a nearest support where buying
support will be seen. Up 26471-26533 a crucial resis up to which
profit booking on higher levels will be seen. In better scenario
a close above 26533 only it'll surge up further to 26920. Down
break below 26100 it'll fall down to 26000 & 25919 initially. In
worst scenario a close below 25919 it'll heavily fall down to
25789 & 25650-25578.