Nifty Outlook
Nifty on Friday (27-04-2018) broke above the triple tops(shown by yellow circles), Technical targets of that break out is 10800. However at CMP of 10692 we are very near to 61.8% (The Golden Ratio) retracement of this year's fall from 11171 to 9951. Moving above which will confirm the end of correction, and next technical level will be 78.6% retracement which is 10911.
So close above 10719, Friday's high will open the gates for 10800 and 10900.
But failing to cross 10719 we can move back to 10538-10426.
Meanwhile 10375 will be the trend deciding level , going below which change the bullish scenario. Till then all dips are buying opportunities.
In options side 10500 PE has highest OI, which should act as support, while in call side highest OI is at 11000 CE.
The cause of concern in this expiry is Karnataka State Election's outcome which is due on 15 May.
BankNifty
BankNifty the under performing sector is still waiting for break out. BankNifty on Friday(27-04-2018) just closed touching the two months old trend line. Coincidentally BankNifty 89 day SMA is also at 25371. So double resistance is 25400-25450.
On BankNifty weekly options side 25500 has highest OI, so a natural resistance. 25622 is 50 % retracement of BankNifty total fall in this year from 27652 to 23606. So this range of 25400 - 25622 is resistance zone.
On lower side supports for BankNifty are coming around 24800-24700.
So BankNifty can trade in this range of 700-1000 points.
BankNifty if slips below 24800 can go down another 300-350 points to 24500-24466.
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