NIFTY OUTLOOK

Nifty (8421.80, +46.75, +0.56%)
The most critical range for the day is between 8422 and 8404, and within that range the levels from 8404 through 8410 take greater significance in that they provide the initial strong support, which should not be broken either by a gap down opening or by heavy selling. Once this is held firmly, the bulls would be far more secure else they would face truckloads of problems. On the way up, the immediate supply zone for the Nifty rests between 8445 and 8470 and the major supply zone is located between 8525 and 8553 for the day. On the way down, major support rests from 8338 and 8302.

• Most critical zone for the day: 8422 – 8410 – 8404, its immediate support


• Strong support: 8375 – 8362


• Major support: 8338 – 8302


• Strong resistance: 8445 – 8470


• Major resistance: 8525 – 8553

Bank Nifty (18440.40, +117.00, +0.64%)

This index shows a bearish flag like formation, and if it fails to take out the significant supply zone between 18455 and 18580 then expect substantial selling pressure coming back to trouble the index and the bank bulls. While a PNB or a Union Bank may show strength but stocks like the BoB are far more vulnerable unless they post significantly higher high than their yesterday’s high. Given that, we should be very vigilant and closely watch the above critical zone between 18455 and 18580 while on the downside the significant support at 18359 needs to be kept in mind for if it is taken out then we might see the index caving in from that level to test the major support between 18175 and 18085.

• Most critical zone for the day: 18455 - 18580


• Strong support: 18359


• Major support: 18175 - 18085


• Strong resistance: 18530 - 18580


• Major resistance: 18681 - 18805

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