This week Nifty spot went up 18 points and went down 119 points from last weeks close and finally ended the week with a loss of 94 points compared to last weekly closing .
Last week we had mentioned that Nifty Spot needs to break and sustain above 8718 to confirm uptrend and Nifty spot needs to break and sustain below 8616 to confirm downtrend for the week. Nifty made a high of 8684.85 and a low of 8547.55 for the week.
This week Nifty triggered our short trade and finally achieved 4 targets giving us nearly 87 points from the short trade before it took support near 8548 which was our confirmation level for further shorts for the week . We saw a narrow range the entire week inspite of being a expiry week and finally got some movement on Friday . We are yet to break and sustain above our level of 8735 which is our trend continuation level for Nifty for this month . For this week Nifty took support near 8542 levels which was our trend reversal level for this month and we need a consecutive closing below it to see another 100 point fall . Last week we saw Bank Nifty breakout and sustain above our levels to go up further but Nifty has failed to do . We may see some profit booking come this week too but we may see some buying near 8440 levels . 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 weeks Nifty had taken support twice in the range of 8520 - 8515 levels and this week it took support near 8548 levels . Had mentioned in the previous weekly post 'Failing to sustain above 8735 can again lead to a sell off' . Though the current dip can't be called a sell off but some more correction can be expected till 8440 this week if we close below 8542 levels . A break above 8735 might now come only after a small correction .
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 8603 to confirm uptrend and then one can expect a move till 8635 initially and breaking and sustaining above 8643 will give further confirmation for the next move which can take us up till 8700. Similarly Nifty spot needs to break and sustain below 8542 to confirm downtrend and then one can expect a move till 8511 initially and breaking and sustaining below 8503 will give further confirmation for the next move which can take us down till 8445 .
Nifty Spot Levels for the week are
Long above 8591 , Tgt 8603 - 8612 - 8621
IF Nifty spot manages to get a close / sustain above 8635 then ,
long again for 8643 - 8670 - 8700
Short below 8554 , Tgt 8542 - 8533 - 8524
IF Nifty spot manages to get a close / sustain below 8511 then,
short again for 8503 - 8475 - 8445
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.