Nifty spot opened at 8880.75 and made a high of 8885.20 , then went down till 8820.30 before closing at 8831.55 . Had mentioned that long positions can be taken above 8894 and short positions can be taken below 8841 for the day . Nifty opened gap with a mild gap up but failed to trigger our long trade and traded for a good part of the day between our long and short trigger before finally triggering our short trade towards the last session of the day and completed just 1 target giving us just 16 points from the short trade . Had mentioned in the previous post that 'Nifty had broken out at the start of this month from the range of 8735 - 8742 where it is currently now and holding these levels we can expect Nifty to attempt to move up again' , and we saw Nifty again make an attempt to go up and test 8900 again but has faced good selling once it nears 8900 levels . Nifty could not give us a consecutive close above our weekly long levels of 8857 and hence we will need to see which side gets triggered as per daily levels on Monday . Had been mentioning in the last couple of posts that ' As long as Nifty is closing below our trend continuation level of 8900 we can expect the upmoves to be sold into ' and we saw the same happening in the last 2 trading sessions. Also have been mentioning in the previous posts that 'Now we have immediate supports at 8716 - 8673' and we saw Nifty taking support on many times in the past 2 weeks within this range . Now we are entering the expiry week for September series in F&O and one can expect some volatility this week and we need to closely watch 8673 levels which is also our trend reversal level for this month as breaking and sustaining below it can begin the next leg of correction towards the next immediate support of 8637 - 8602 and below it we have next supports at 8552 - 8522 levels . We have a cluster of supports between 8700 - 8500 levels and one should watch the price action as we near each support to decide the next trade. Also Nifty has been taking support near 8515 - 8500 levels in the entire August month so this zone should provide good support incase of a deeper correction. As long as Nifty manages to hold 8716 - 8673 levels on dips we can expect to see a retest of 8900 levels again . Nifty needs to close or sustain above 8900 to begin the upmove again and sustaining above 8956 can take us towards 9050+ levels.
Trend reversal in Nifty for this month would be consecutive closing below 8673 and trend continuation would be on consecutive closing above 8900 spot .
For today if Nifty spot sustains above 8856 we can see a initial move upto 8881 & on sustaining above 8888 we may see further upmove till 8934. Similarly if Nifty spot sustains below 8807 we may see a initial move on the downside upto 8782 & on sustaining below 8775 we may see a further downmove till 8729
Nifty Spot Levels for the day are
Long above 8856 for 8871 - 8888 - 8934 , SL 8824
Short below 8807 for 8792 - 8775 - 8729 , SL 8839
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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.