Nifty (8530.80, +95.25, +1.12%)
On the last Friday, the market moved up quite strongly-the index tested the critical resistance zone between 8550 and 8630. This is the most important zone for the bulls for it has the potential to nip any fledgling rally in the bud. This is such an important supply zone that an intraday spike or even a one-day close above this range would not mean much for the supply pressure here could be a sustained selling campaign that could happen after a bull trap laid by a close above this zone. Thus, we need to be very vigilant about any short term speculative long position that has been created with a hope of a potential bullish reversal.
The most critical range for the day is located between 8598 and 8628-if the Nifty were to take out this range and stay above that on good buying support then only retain old short term long positions else it would be more prudent to take at least some profits in them. Our anticipation is that, on the back of high positive expectation of a favorable outcome from the bimonthly monetary policy announcement scheduled for tomorrow, we could see a short term pullback rally top on this eventful day. We need to see the index fulfilling the conditions stated in the foregoing paragraph.
On the last Friday, the market moved up quite strongly-the index tested the critical resistance zone between 8550 and 8630. This is the most important zone for the bulls for it has the potential to nip any fledgling rally in the bud. This is such an important supply zone that an intraday spike or even a one-day close above this range would not mean much for the supply pressure here could be a sustained selling campaign that could happen after a bull trap laid by a close above this zone. Thus, we need to be very vigilant about any short term speculative long position that has been created with a hope of a potential bullish reversal.
The most critical range for the day is located between 8598 and 8628-if the Nifty were to take out this range and stay above that on good buying support then only retain old short term long positions else it would be more prudent to take at least some profits in them. Our anticipation is that, on the back of high positive expectation of a favorable outcome from the bimonthly monetary policy announcement scheduled for tomorrow, we could see a short term pullback rally top on this eventful day. We need to see the index fulfilling the conditions stated in the foregoing paragraph.
- Most critical levels for the day: 8598 – 8628
- Strong support: 8551 – 8508
- Strong resistance: 8598 – 8628
- Major support: 8488 – 8454
- Major resistance: 8670 – 8704
Bank Nifty (18617.85, +411.20, +2.26%)
The rally in the bank index is predicated upon a favorable outcome from the impending monetary policy announcement scheduled for tomorrow; however, one of the pink dailies says that opinion poll conducted by it shows that the central bank may not alter interest rates for now though the Statutory Liquidity Ratio (SLR) might be reduced, and the banks on their part might initiate lowering the base rates for loans. If this were to be true then there could be at least some tempering of the exuberance this index has shown on last Friday. We need to see this index decisively getting past its 50-day EMA at 18817, which is exactly 200 points above the last closing price to really consider a bullish reversal is in process else it could just be a pullback rally. The reversal would be confirmed only when this index successfully takes out 19010 through 19060, and stays above that on closing price basis for at least two days; till such time that happens it would still be a pullback corrective rally.
- Most critical levels for the day: 18535 – 18447, its strong support zone as well
- Strong resistance: 18792 – 18817
- Major support: 18415 – 18364
- Major resistance: 19010 - 19060
 On the last Friday, the market moved up quite strongly-the index tested the critical resistance zone ...){kind=link}
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