Last week we spoke on Buy Dips and Sell Rises in our weekly view. The spot was sold off from 8332 again buy got buyers at 8080. This week we are looking for a test of 8380/ 8410 spot where we watch for signs of selling.
NIFTY SPOT :
(Buy dips to 8170 tgt 8335/8420)
We see supporting efforts launched in Nifty at the lows of last week which over the extreme short term has the ability to push the index higher. However over the medium term we still feel that the index will meet selling at higher levels and that 8000 spot low would be taken out even by as little as 60- 80 points.
For the coming week we remain positive on the Nifty as long as 8170 spot – our ref line of last week holds over the coming sessions.
So with 8170 as support we expect a test of 8335 again. Further up we see index touching 8420 LVN immediately above 8335 spot.
Lower down if 8170 spot gets broken we should see an immediate drop to 8090 again.
BANKNIFTY SPOT :
First Updated (17/05)
(Buy Dips to 17950 tgt 18393/ 18530)
For the coming week we see a nice ring of support at 17950 and our strategy would be to buy all dips for an initial target of 18390 spot and 18500 spot.
First support is at 17950 and below a quick intra day dip can come to 17720.
However we feel longs would again be in trouble if price closes below 17950 spot during the week in any session. If that happens there is more possibility of seeing 17432 again during the week.