Nifty opened with down gap and kept scaling
NIFTY: On the back of negative cues from global indices, Nifty opened with down gap and kept scaling further northward in first hour. The index broke below its crucial support level at 8,300 on Friday but respected its support at 8,285 and turned back to the 8,333 level ,as we have already mentioned in our previous report that nifty can touch 8280 as nifty did yesterday.In line with prevailing range bound moves, it partially trimmed losses as the day progressed and closed above 8300 mark by the end. Selling pressure was witnessed in realty and oil& gas while auto and pvt banking stock were the major gainers. As of now, we don’t expect any major respite and prevailing consolidation would continue. In coming days, the current range(8250-8400) would further narrow down and either side break will eventually result in strong directional move. Till then, one should continue to concentrate on stock specific front and trade accordingly.
BANK NIFTY: Choppy and sideways trading continues in BANK NIFTY; prices opened flat near yesterday’s close but then a sudden decline in first hour took index to its day low. On the daily charts, prices had tried to break the narrow range which is going on from last five trading days. It finally managed to break that range but just for few minutes as prices recovered very quickly. We had advised to take a trade on the long side if price breaks that range on the upside above 18150 but it did not go above that level. Hence, trade was not executed today; nevertheless, this trade will still open on Monday. Buy the Bank Nifty above 18150 and if that trade executes then put a stop loss at 17950. Target for this trade is positioned at 18550.
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