NIFTY OUTLOOK 7TH AUG, 2015

Nifty August futures (8615, +22.35):
Nifty future opened on a shaky note but moved up firmly for the rest of the session and has closed above the 8600 region. It is a continuation formation on the charts since a higher low and higher high was posted in this session. Having closed above 8600 after a few failed attempts, this region will be crucial in determining the movement for the day. It is the immediate support and as long as this holds on dips, the going is to be strong with 8700 as the net target. Below 8600, support will be found in the 8590, 8565, 8530, 8500 region but the critical level is around 8475-8470 and a close below this level will signal weakness.

• Resistance: 8560, 8590, 8600, 8634, 8654, 8665, 8690, 8710


• Support: 8565, 8530, 8500, 8475, 8440, 8410, 8378, 8340

Bank Nifty August futures (19098.95, +83.4):

The ominous formation on the charts of Bank Nifty future on the day before gave its effect as it turned volatile and breached the previous day low but posted a fresh high as well, in the last session. The same formation signalling indecisiveness for bulls and bears is there in the charts again but since it has closed the day with gains, expectation are in the positive side. Though the first half of the session was subdued, momentum picked up in the latter half of the session. It posted a high of 19194 but failed to close above the 19140 resistance. It must take out initially 19140, and then 19280 decisively for fresh momentum. On the lower side, it breached the previous day low when it tested 18890 and this region may now be considered an important support though 19010, 18970, 18930 are important levels above it. A close below 18810 at this juncture will be the first sign of weakness and below 18770 the scales will tip in favour of bears.

• Resistance: 19140, 19190, 19200, 19280, 19380-19400, 19510


• Support: 19010, 18970, 18930, 18890, 18825, 18808, 18775, 18730, 18630, 18570, 18540