This week Nifty spot went up 45 points and went down 143 points from last weeks close and finally ended the week with a loss of 11 points compared to last weekly closing .
Last week we had mentioned that Nifty Spot needs to break and sustain above 8742 to confirm uptrend and Nifty spot needs to break and sustain below 8625 to confirm downtrend. Nifty made a high of 8728.35 and a low of 8540.05 for the week.
This week Nifty triggered our short trade and completed 4 targets giving us nearly 100 points from the short trade . As mentioned in the previous weekly post we were expecting Nifty to test 8589 - 8563 levels if it managed break and sustain below 8647 and Nifty completed our targets once it sustained below it . Nifty has this week again taken resistance near 8735 level which is our trend continuation level for this series . Nifty made consecutive highs at 8724 & 8728 but was unable to break above 8735 and saw profit booking take it down till our support level of 8542 once again . As mentioned previously 8542 is our trend reversal level for this series and we have seen Nifty break below it on a few occassions but is yet to give a close below it . In the previous week Nifty had taken support twice in the range of 8520 - 8515 levels . So we have a small support at these levels below 8542 spot . Nifty has given us another weekly close above our immediate resistance level of 8630 - 8660. Though Nifty has broken below our trend reversal level of 8542 once again this week after doing so twice in the previous week but it has failed to give a close below it giving an indication that maybe one more new high could be seen . Now we need to see if we can get a close above 8735 to continue this upmove and test 8830 . Failing to sustain above 8735 can again lead to a sell off.
Trend continuation in Nifty spot for the month of August would be on a consecutive close above 8735 and trend reversal would be on a consecutive close below 8542
In the coming week Nifty spot needs to break and sustain above 8742 to confirm uptrend and then one can expect a move till 8816 initially and breaking and sustaining above 8835 will give further confirmation for the next move which can take us up till 8969. Similarly Nifty spot needs to break and sustain below 8602 to confirm downtrend and then one can expect a move till 8528 initially and breaking and sustaining below 8509 will give further confirmation for the next move which can take us down till 8375.
Nifty Spot Levels for the week are
Long above 8715 , Tgt 8742 - 8764 - 8786
IF Nifty spot manages to get a close / sustain above 8816 then ,
long again for 8835 - 8899 - 8969
Short below 8629 , Tgt 8602 - 8580 - 8559
IF Nifty spot manages to get a close / sustain below 8528 then,
short again for 8509 - 8445 - 8375
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.