Daily Technical View

Daily Technical View on NIFTY, BANK NIFTY

Nifty:- Bull’s conceive, Bear’s abort? 
Friday and Week-end was more of socio news surrounding the abortion court verdict. The fury and the instant response globally too is cause for concern. While that is the case, there appears bulls being conceived, and bears trying to abort their plans? or is it another typical bear market rally. The answer is yes and know. The bear market rally are typically sharp and quick (which is not the case of bottom formation). The rise is one of the weakest fundamentally and technically coming on the oversold zones. Every index worth their name printed almost a piercing pattern on the daily. So it is Gravity assist moves and not ground reality moves. However, as money management principle it is necessary to respect one`s stops and targets. In all probability the open is a gap. For the bears a close today below 15900 keeps hopes alive, for the bulls a close above 15830 opens scope towards 16100. Suffice to say the bias is to the upside (though the gap up does not help, Friday close is the stops for longs. Else a range of 15730-15980 is workable range.

NIFTY BANK:-  Mind the Gap!
Bank Nifty, Close near the low or high on a weekend is a high probability trade in for the next week in the direction of the close. This can be applied to daily also but with a lower success rate than the week. It clearly shows the confidence of the underlying trend. Close also is near the previous high 33600-800 range and thus the potentially Gap open would stamp the existing bears and short squeeze alone is sufficient to keep the space well bid near term. Now that 32000 is posted as strong support the focus shifts to how high we can aim the story. Within the recent ranges of 32-35 K holds still good. For the day though 33700-34400 can be boundaries of ranges, leave some room to the top. A surprise close below 33500 abandons the scope for further rise.