Weekly Spot Outlook Of Nifty for 28th Jan to 01st Feb

NIFTY

This week Nifty went down up 81 points , then went down by 151 points before finally ending the week with a gain of 126 points compared to last weekly closing. 

As per levels given for the previous week Nifty Spot needed to sustain and close above 10965 to confrim uptrend and Nifty spot needed to sustain and close below 10850 to confirm downtrend for the week. Nifty made a high of 10987.45 and made a low of 10756.45. 

Had mentioned in previous weekly post that Nifty needs to sustain above 10965 to test 11025 - 11045 initially and above it further till 11095 - 11155 and Nifty needs to sustain below 10850 to test 10785 - 10770 initially and below it further till 10720 - 10660, and we saw Nifty was unable to sustain above 10965 on Monday and reversed to trigger our short trade and made a low of 10756 on Friday on the back of heavy selling in a few index stocks especially Zee & Maruti  . 

Now in the coming week Nifty needs to break and sustain above 10850 to test 10920 - 10940 initially and above it we can see a test of 11000 - 11065 . Breaking and sustaining below 10715 we can see a test of 10645 - 10625 initially and below it we can see a test of 10565 - 10495. Those who are looking to enter fresh longs should wait for Nifty to sustain / close above 10850 and enter with a stoploss of 10800 for a initial target of 10920 - 10940 and look to hold further only on sustaining or getting a close above 10940 for the next targets . Those who are looking to enter fresh short should wait for Nifty to sustain / close below 10715 and enter with a stoploss of 10760 for a initial target of 10645 - 10625 and hold further only on sustaining or getting a close below 10625 for the next targets. 

For the month of January , longs will get confirmed in Nifty with a consecutive close above 10960 for a initial target of 11145 - 11195 and sustaining / closing above it we can see a further move till 11355 - 11530 .  Similarly shorts will get confirmed with a consecutive close below 10600 for  a initial target of 10415 - 10370 and sustaining / closing below it we can see a further move till 10205 - 10030 . 

Had mentioned in the previous weekly post "Nifty has its immediate resistance zone now at 10950 - 10970 and it needs to give a strong consecutive close above it for a upmove towards 11145 - 11195 initially else we can see selling pressure begin again." , and we saw selling pressure begin in Nifty on being unable to sustain above the resistance levels.

Nifty now has strong support at 10740 - 10715 and it needs to hold above these for a pullback to come and failing to do so we can see a further correction towards the levels mentioned above for the week .

Nifty Spot Levels for the week are

Long above 10825 , Tgt  10850 - 10870 - 10890

IF Nifty spot manages to get a close / sustain above 10920 then ,

long again for 10940 - 11000 - 11065

Short below 10740 , Tgt 10715 - 10695 - 10675

IF Nifty spot manages to get a close / sustain below 10645 then, 

short again for 10625 - 10565 - 10495

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 and keep trailing your stoploss .

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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.