NIFTY OUTLOOK 5TH AUG, 2015

Nifty (8516.90, -26.15, -0.31%)
While the markets are showing marginal weakness in Asia and the US market closed a little weak, the SGX Aug Nifty is trading with a gain of 7.50 points at 8543.50 albeit on low volume as we write this Market Outlook. Today, unless the Nifty is able to take out 8569 through 8574 resistance zone, we expect it to show some bit of weakness in that it would attract selling at higher levels. On the other hand, so long as the index does not fall below 8452 through 8448 support area, it would not be bearish either.

• Most critical zone for the day: 8545 – 8569 - 8574


• Strong supports: 8495 - 8483


• Major support: 8552 - 8548


• Strong resistance: 8569 - 8574


• Major resistance: 8635 – 8659

Bank Nifty (18972.60, +57.90, +0.31%)

There is a bit of indecision among the bank bulls in the face of emerging supplies at higher levels especially after a strong rally in the PSU banks. Now, either it takes out 19065 or it falls sustainably below 18765 to give us a directional move; in between—within the 300-point zone—it would behave like a range bound counter. If it trades for most of the day within this 300 point band and then takes out the upper boundary it would just be that after a pause it is breaking out on the long side to scale up higher levels else if the opposite happens in that it pierces below 18765 then it may test 18679 through 18570 range. However, so long as it does not fall below 18389 today, it would not turn decisively bearish.

• Most critical levels for the day: 19065 (upside) and 18765 (downside)


• Strong support: 18855 - 18765


• Major support: 18679 – 18570 - 18389


• Strong resistance: 19050 - 19065


• Major resistance: 190185 – 19310