Nifty spot opened at 8807.90 and made a high of 8809.55 , then went down till 8715.10 before closing at 8723.05 . Had mentioned that long positions can be taken above 8856 and short positions can be taken below 8807 for the day . Nifty triggered our short trade and completed all our targets giving around 75+ points from the short trade. Had mentioned in the previous post that '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 of last week. 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 ' including today as Nifty made a low of 8715 and closed just above it but below 8742. Now we have just 3 days left in the expiry week for September series in F&O and one can expect some volatility in the next couple of days and we need to closely watch 8673 levels which is also our trend reversal level for this month as breaking and sustaining below it or closing 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 had been taking support near 8515 - 8500 levels in the entire month of August 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 8850 - 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 8743 we can see a initial move upto 8764 & on sustaining above 8769 we may see further upmove till 8807. Similarly if Nifty spot sustains below 8703 we may see a initial move on the downside upto 8682 & on sustaining below 8673 we may see a further downmove till 8639
Nifty Spot Levels for the day are
Long above 8743 for 8755 - 8769 - 8807 , SL 8717
Short below 8703 for 8690 - 8673 - 8639 , SL 8729
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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.