16-02-2016 - Index views

Nifty :

Nifty closed at 7161.45. As expected, volatility came down a bit and as per previous report, Nifty bounced back fiercely with a huge 2.5 % gain in a single day with 172 points. As mentioned, it has achieved the first target very easily and headed towards the second target of 7230. 7050 was the level given to initiate the long, it opened at 7064 and never came down and gained almost 100 points after that. Now for any long position, one can trail the Stop Loss to 7100 on closing basis. Let the Nifty achieve target of 7230 or hit the Stop Loss of 7100. Then the new strategy will be discussed here. Till then, hold the longs with trailing Stop Loss ride the rally.

Bank Nifty :

Bank Nifty closed at 14,430.80, a huge 3.20 % gain in a single day. As Nifty bounced with global cues, even Bank Nifty bounced back to the exact resistance level of 14,400. Bank Nifty has closed slightly up above the resistance level today. 14,600 & 14,800 are the immediate & small term targets / resistances. Let us see the price action & behavior at these levels & decide the strategy. Till then one may be in the longs with a short term Stop Loss of 14,100. After tomorrow’s price action, we will be able to plan the next move. Till then, trade according to the levels given.