26-02-2016 - Index views

Nifty :

Nifty has closed at 6968.50, a weaker close. As stated yesterday, it has broken the lower range of 6980 & closed below it. As per the logic, it has to move downward near the recent lows it has made & may be further down also like 6730 & 6560 kind of levels. Trading in an oversold zone will bounce the Nifty time to time but the sustained trade & close for couple of days above the resistances is important. There are number of resistances ahead but for now we have to clear 7100 on closing basis. After that we will think & discuss about another level. For tomorrow’s trade if Nifty does not break 6960 & trades above 6980 sustainably, one may trade long for some time with a Stop Loss of 6960. Target & resistance is at 7100 & we already have discussed the down levels above.

Bank Nifty :

Bank Nifty closed at 13,567.90; we have mentioned yesterday that Bank Nifty is weaker than Nifty & 13,400 seems an achievable target. Today’s low is at 13,541, almost there. We may have a bounce tomorrow or a stable to positive day, but as of now, do not consider it as a trend reversal. When there will be a signal, it will be discussed & shared here. As of now the trend suggests the down levels of 13,300 & 13,100 for a very short term. The bare minimum requirement of a close is at 13,900 for gaining strength to make a journey upward. Till then one may consider it as a “ Sell On Rise ” kind of market, so trade accordingly.