Nifty Breakout or Breakdown?

trading tips

Indian Stock Market would open positive. Technically, Analysis would still remain same. 

Indian Stock Market has entered into very short term positive trend and now we could see further short covering. Now the breakout or breakdown from current region would be led by upcoming news of US FED decision, RBI Rate Cut, etc. 

For now, traders should continue to buy on dips with strict stoploss of 16200 levels for BankNifty and 7553 levels for Nifty and should reverse their positions once these levels are breached on closing basis. 

CNX Nifty ended the week on positive note gaining more than 1%.
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Technically the index is trading below short term and long term moving averages which suggest the index is trading very weak and the high volatility can be witnessed during the week. There are many global events next week so we can see very high levels of volatility. Major event which the markets have to dealt will be FED outcome.

If the index breaks below the levels of 7500 on closing basis the index can move to the levels of 7200.

If the index manages to move above the levels of 7820 the index can move to the levels of 8000. Index manages to move above the levels of 7820 but could not close above that level. So next week if index manages to close above the levels of 7820, the index can move to the levels of 8000.

Range of the week is seen from 7400 to 7500 on downside to 8000 to 8100 on upside.

Bank Nifty ended the week on positive note gaining around 3%
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Technically the index is trading below short term and long term moving averages which suggest the index is trading very weak.

If the index manages to move above the levels of 16500 the index can move to the levels of 17000, but the index manages to hit a high of 16781 during the week.

This week if the index breaks below the levels of 15760, then the index can drift to the levels of 15200, where 500 Daily SMA is positioned.

If the index breaks above the levels of 16780, then the index can move to the levels of 17200 to 17500 from where the index was sold off.

Range for the week is seen from 15000 to 15500 on downside to 17000 to 17500 on upside.

FIIs were the sellers for whole of the September 2015 and it looks like the trend may continue until any clear decision is been taken by US Fed. 

FIIs were net sellers of Rs.754.27 crores whereas DIIs were net buyers of Rs.411.43 crores in last trading session. 

Nifty would see strong support at 7750-7665-7553-7500 whereas strong resistance would be seen at 7865-7880-7910-7962 levels.

NSE Nifty: (7789) The support for the Nifty is 7750-7665-7553-7500 and the resistance to the up move is at 7865-7880-7910-7962 levels.

NSE BankNifty: (16613) The support for BankNifty is at 16500-16300-16200-15950 and the resistance to the up move is at 16780-16911-17060 levels.

BSE Sensex: (25610) The support for the Sensex is at 25500-25395-25232-25020 and the resistance to the up move is at 25880-26011-26150 levels.