Weekly Spot Outlook of Nifty for 17th to 21st October

NIFTY

This week Nifty spot went up 48 points and then went down 156 points over last weeks close and finally ended the week with a loss of 114 points compared to last weekly closing . 

Last week had mentioned that Nifty Spot needs to break and sustain above 8769 to confirm uptrend and Nifty spot needs to break and sustain below 8626 to confirm downtrend for the week. Nifty made a high of 8745.80 and a low of 8541.35 for the week.

This week  Nifty triggered our short trade and achieved 3 targets giving us around 105 points from the short trade . Had mentioned in the weekly post 4 weeks ago that '8900 is our trend continuation level for September' and we saw Nifty close below 8900 indicating weakness in the current uptrend and it can make us go back to test the breakout levels of 8735 if global markets also turn weak' and also that 'We also have a support now at 8673 below 8735 and only on a consecutive closing below 8673 we can expect a test of 8520 - 8515 levels incase of a deeper correction' and we have corrected all the way till 8542 in the week gone by . We have seen a correction of 400 points from the highs of September now.  Nifty took support just above our levels of 8531 below which further correction was expected for the week. Incase of a break of 8520 - 8515 levels ,  Nifty has a small support near 8480 - 8464 levels . Nifty has closed below 8600 inspite of positive global cues indicating chances of one more dip till our next supports . If Nifty holds 8522 on closing then we should see a retest of 8673 - 8735 levels and above it till 8812 levels . IF Nifty gives a consecutive close above 8755 we may see it test higher levels . 

For the month of October we can expect uprend in Nifty spot on a consecutive close above 8755 and downtrend continuation would be on a consecutive close below 8467

In the coming week Nifty spot needs to break and sustain above 8649 to confirm uptrend and then one can expect a move till 8717 initially and breaking and sustaining above 8735 will give further confirmation for the next move which can take us up till 8859. Similarly Nifty spot needs to break and sustain below 8518 to confirm downtrend and then one can expect a move till 8450 initially and breaking and sustaining below 8432 will give further confirmation for the next move which can take us down till 8308 . 

Nifty Spot Levels for the week are

Long above 8624 , Tgt  8649 - 8669 - 8689

IF Nifty spot manages to get a close / sustain above 8717 then ,

long again for 8735 - 8794 - 8859

Short below 8543 , Tgt 8518 - 8498 - 8478

IF Nifty spot manages to get a close / sustain below 8450 then, 

short again for 8432 - 8373 - 8308

P.S. Always wait for the yellow highlighted levels to be crossed after taking a long/short position for confirmation of the trade . Once the highlighted levels are crossed and the next target is achieved move your Stoploss to the highlighted levels .

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Disclaimer : These are my personal views and one should do their own research before entering any trades based on them  . The use of the blog is agreement that the blog is for informational and educational purposes only and does not constitute advice in any form in the furtherance of any trade or trading decisions.