22-03-2016 - Index views

Nifty :

Nifty has closed at 7713.35. It is a huge breakout day today. After almost two week’s time, a real breakout has happened today. Follow up buying emerges or not, whether it sustains or not, these are secondary questions. The first and most important part is a break out and as per our Breakout Trading System; one must initiate a long in this break out for very modest targets of 7800 & 7860 initially. Of course a closing basis Stop Loss of 7570 must be maintained. The further levels will be posted here time to time and the strategy will be discussed also. For the time being, longs are the only visible action to be performed. In case non- willing to digest a long Stop Loss, one may opt for Call Options.

Bank Nifty :

Bank Nifty closed at 15,941.50; as we have said, Bank Nifty is in a process of breaking out of a range. it did today. The targets were 16,100 & 16,200 initially. It made a high of 15,965.70 today. Now for Bank Nifty, 16,200 & 16,400 is also visible on the horizon. How far the momentum will last that time will tell and will be confirmed by the follow up buying, but as of now, we, definitely have a break out today. One may initiate a Long position in Bank Nifty fresh, for the targets of 16,200 & 16,400 as mentioned, of course with a closing basis Stop Loss of 15,600. In case somebody finds it difficult to trade long with such a wide Stop Loss one may opt for a Call option and stay long.