NIFTY OUTLOOK 3RD AUG 2015

Nifty (8532.85, +111.05, +1.32%)
The Nifty is poised to make another stride up or so it seems but for that to happen it needs to clear 8562-mark decisively. On the downside, it should not fall below 8524 and stay there so as to keep the required gumption to successfully take out the 8562-level. The levels of 8524 and 8562 together constitute the upper and lower boundaries of the most critical zone for the day. If it is successful in taking out the 8562 level firmly then it can move up to test 8600 initially and there after 8635 – 8640. On the downside, below 8524, support comes in at 8504 – 8491 and then 8464.

• Most critical zone for the day: 8524 - 8562


• Strong supports: 8504 – 8491 and 8464


• Major support: 8412 - 8398


• Strong resistance: 8593 - 8607


• Major resistance: 8635 – 8659

Bank Nifty (18729.85, +289.45, +1.57%)

Technically, this index is strongly poised to move further up provided it takes out the supply zone between 18811 and 18866. Once it is able to do that decisively, it is expected to test the 19000-mark as well prior to the monetary policy review outcome is made public by the RBI tomorrow. The levels between 19050 and 19066 remain a formidable resistance for the day. The most critical levels for the day, however, rest from the levels of 18563 and 18589. So long as the Bank Nifty remains above this range its bullishness would remain intact and the bulls would be on the front foot even if there were to be some profit taking; however, a fall below 18563 on sustained basis would suggest more selling could be on the cards.

• Most critical zone for the day: 18563 - 18589


• Strong support: 18359


• Major support: 18175 - 18085


• Strong resistance: 18811 - 18866


• Major resistance: 19050 - 19066