16-10-2017 - Index views

NIFTY : 10,256

As mentioned, "The trend is up & the Nifty will go up & one may go long with a Stop Loss of 10,100", the Nifty did exactly in the same manner. The trend is not only up but it is slowly breaking out also which gives the enormous strength to the NIFTY. It does not mean that the NIFTY won’t come down at all but it means that the correction will be a correction in real sense. It might be shallower than we think or it may consolidate in a range for quite a good time & then resume the uptrend again.

In any case, we have to keep a strict Stop Loss of 10,100 for the longs in NIFTY. One may exit in case of the close below 10,100 & again reenter on the close above that. This strategy will be valid till the time new signal & level does not get generated. Since we are on the all time high, there is no past reference for the target but looking at the pace & the behavior, we may assume that 10,500 is very much possible in near future.

Other levels & the trend will be discussed in the next post when the appropriate signal will be generated. Till then, keep the levels handy which we have discussed here.

BankNifty : 24,743.30

There is no change in either view or levels to trade as there was hardly any change in the close as it is flat. You may refer the previous post which is repeated below :

The BankNifty also has given a short term breakout on the daily chart. It looks strong in short term. the BankNifty has trapped in a big trading range. Now the resistance & targets can be set at 24,900 & 25,200 for short / medium term. A strong support zone is at 24,200 to 24,000. One may take 24,200 as a warning bell & start exiting all the longs in BankNifty or any other banks, once it closes below 24,200. A strong close below 24,000 may drag the BankNifty further down. So please keep these broad range & the levels in mind & trade accordingly.