The Nifty closed on the positive side, technically. But to maintain the positive momentum, it will have to trade above the levels of 5660. The important levels for today would be 5628 on the lower side and the 5660 on the higher side.
The possibility of Nifty taking trend either towards bull or bear is high at this stage. Place your stop loss only once the trend is clear and there has been a breach of the current support (5628) or resistance (5660).
If today a high of 5660 or 5666 is not touched then it is clear indication for bear reversal, in which case it would be natural to expect a correction till 5500.
Bank Nifty (Refer Chart - Bank Nifty)
Again Bank Nifty closed on a positive note. Today's important level for Bank Nifty are 11300 and 11460. If it manages to break yesterday"s high, then it will bring more strength for Bank Nifty and we should expect a target of 11550.
On the down side 11367 / 11300 are major supports to Bank Nifty. Keep your positional stop loss for your long at 11400 on closing base.
Buy above Rs 702
Stop loss at Rs 696
Target price of Rs 712 / 718
Sell below Rs 185
Stop loss at Rs 187.20
Target price of Rs 181.25
Rajesh V. Ravanappan is a practitioner of technical analysis. He has eight years of experience in the share broking industry. He is a contributing writer for www.goodreturns.in
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