05-02-2016 - Index views

Nifty :

            Nifty closed at 7422.65. As stated in previous report / post, it did not go & sustained below 7370, instead it made a high of 7478.70 also. So as of now the strategy worked well for being long in Nifty. The close is not bad as far as the long position is concerned. The StopLoss is very near & the risk reward ratio is favorable. 7370 is a strict StoLoss and initial targets are 7520 & 7620. A good close above 7620 can lead it to further upper levels & in any case if it closes below 7370, a deep cut in the index can be seen.

BankNifty :

                        BankNifty closed at 14,921.50, a flat to positive close. Since last two days, it is sustaining the support level of 14,800. Any good up move in Nifty, can boost even BankNifty up. In a rally, BankNifty can move up to 15,000 & 15,300 initially. In case market does not sustain these levels and starts cracking down, the lower targets of 14,800 & 14,400 can be achieved easily. Please note, BankNifty is weaker than Nifty, so any breakdown, will drag BankNifty much lower than Nifty as it always outperforms Nifty. Keep these levels handy & trade safe.