NIFTY OUTLOOK, 18TH JAN, 2016

Market Outlook  18 January 2016 (based on Index futures)
Nifty January futures (7446.25) (-94.3): Nifty future surrendered all the gains of the previous day and more as it closed the day in the negative. The low of 7428 posted 2 days earlier, however, held on and some bounce back may be expected if this level is not breached. A breach of this support will lead to further sell off and it may then slide to levels below 7400. 7500, 7530, 7590 are important resistance for now and must be decisively taken out for any semblance of stability. Resistance: 7480, 7500, 7530, 7590-7600, 7625, 7660, 7690-7700 Support: 7430, 7400, 7375, 7345, 7300, 7240, 7220, 7200 Bank Nifty January futures (15204.25)(-384.15):  Bank Nifty futures edged further down once the critical support around 15435 was decisively taken out in the latter half of the last session and it closed the day deep in the red. 15485-15435 will now prove to be a major supply zone on pull backs. 15050-15000 is the next important support region and if this region holds on dips, a weak pull back may be expected. If, however, this region is also breached, fresh panic offloading by the bulls may take place as bears tighten their already firm grip. On the higher side, 15300-15360 is the immediate resistance and above that, bulls need to absorb the supply in the 15435-15485 region, for signalling any meaningful pull back and halt in further erosion. Resistance: 15300, 15360, 15435, 15485, 15500, 15600, 15630, 15690-15700 Support: 15200, 15150, 15100, 15050, 15000, 14935, 14900, 14840, 14730, 14660 --------------------------------------- ADAM CAPITAL FINANCIAL SERVICES DIVISION OF TRADING AND RESEARCH WWW.ADAMCAPITALFINANCIAL.COM