Nifty Outlook and Trading Strategy For Tomorrow 16-Feb

It was great day for Indian Stock Markets. Both indices (Nifty and Sensex) traded very well and closed above the important psychological levels of 5500 and 18000 respectively. Nifty registered a break out above the level of 5,450 and continued its upside momentum. The upside momentum is still very strong and may now take the Nifty higher to test the level of 5,648 which is the 61.80% Fibonacci retracement level of the entire decline from the peak in November 2010 till the lows of December 2012. Now the level of 5,400 would act as an important support for Nifty. We recommend holding on Nifty long positions with a stop loss of 5,400.