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Wednesday, February 3, 2016

04-02-2016 - Index views



Nifty :
            Nifty closed at 7383.50. In yesterday’s report / post, we have mentioned to buy fresh around 7420 with a Stop Loss of 7370 on closing basis. It did touched the level but did not close below that. Now we have a very crucial day tomorrow as we have closed at dot support. If it trades above 7370 for an hour, we can safely assume that the recovery is on the way. But in any case if it starts trading below 7370 and sustains there, one must cut all the longs of Nifty & either sell short the Nifty with a strict Stop Loss of 7450 or sit aside & wait for another signal.

BankNifty :
                        BankNifty closed at 14,892.80. BankNifty made a low of 14,800, exact level which we have mentioned in yesterday’s report / post. In case if it sustains the level above 15,000, we may see a jump and the levels like 15,300 / 15,500 very soon. In case of a good gap up opening and a sustained close above today’s high will create an “ Island Reversal ” pattern in both, Nifty as well as in BankNifty, which is a bullish pattern. In case of a weak trade and sustained trade below 14,800 might take it to the next support zone around 14,400.

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