Market Outlook Oct 07, 2014 Nifty (7945.55, -19.25, -0.24%) The index needs to get past 7955 through 7965 supply zone to show the initial gumption that is badly needed for an upward directional swing. However, just crossing and sustaining above 7965 won’t do much except in that it reduces the chances of a sustained fall below the 7950-mark. What it needs to accomplish in order to show real bullish strength is to cross the level of 7997 decisively and quite comfortably. While those are the goalposts for a bullish upsurge, if it were to go down and fall decisively below 7890 on closing price basis only then the Nifty turns bearish. The next two sessions starting today would decide the fate of the market—if the bulls can hold the market and push it up beyond Wednesday’s session then we are likely to see a fresh uptrend developing. Let us watch how the market swings pan out over the next two days… Most critical levels of the day: 7955 – 7965 Strong resistance: 7997 – 8010 Strong support: 7890 – 7874 Major resistance: 8046 – 8127 – 8155 Major support: 7841 – 7796 Bank Nifty (15316.20, -76.05, -0.49%) Even for this index, there are chances that it can post a bounce back but a sustainable bounce can only happen when the index gets past 15765 – 15920 range, which as of now looks like a tall order. On the other hand, any fresh fall below the 15150 – 15025 demand zone would spell real trouble for the bank bulls. One thing, however, is very clear—even if there were to be an attempt to orchestrate a rally by the bulls here, they must be able to push things beyond 15765 – 15920 strong supply zone else they stand to lose out. The same scenario applies here as well: the next two days would be of paramount importance in determining the future course of action by the traders here. If the players can maintain the bullish tempo beyond Wednesday, Oct 08, then only we have some hope else we are in for some extra selling pressure. Most critical level for the day: 15358 Strong support: 15315 – 15150 Strong resistance: 15574 – 15625 Major support: 15025 – 15840 Major resistance: 15920 - 16135 Note (1): Either on the long side or on the short side if at any moment a counter is not moving beyond an initial or interim target to the final target book profits. Once initial target is crossed, you can use that as your trailing stop-loss level. Notes (2): • Calls are based on the previous trading days price activity. • The call is valid for the next trading session only unless otherwise mentioned. • Stop-loss levels are given so that there is a level below/above, which the market will tell us that the call has gone wrong. Stop-loss is an essential risk control mechanism; it should always be there. • Trading involves considerable risk. Trade at your own risk to the extent you are comfortable. The analyst shall not be responsible for any losses incurred for acting on these recommendations. Trade Well, Rajat Bose Follow me on twitter https://twitter/rajat_bose on Linkedin in.linkedin/pub/rajat-bose/13/901/12a on facebook facebook/pages/Rajat-Bose/493492714048323 This message (including any attachments) is intended only for the use of the individual or entity to which it is addressed for educational purposes only and may contain information that is non-public, proprietary, privileged, confidential, and exempt from disclosure under applicable law or may constitute as attorney work product. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error, notify us immediately by send an email to arkaybee@gmail and (i) destroy this message if a facsimile or (ii) delete this message immediately if this is an electronic communication. Thank you.
Posted on: Mon, 06 Oct 2014 20:21:00 +0000
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