Nifty spot opened at 8748.90 and made a high of 8768.50 , then went down till 8690.50 before closing at 8706.40 . Had mentioned that long positions can be taken above 8743 and short positions can be taken below 8703 for the day . Nifty triggered our long trade at opening and completed 2 targets giving around 18 points from the long trade. Nifty took resistance at our weekly short confirmation level of 8768 and could not break and sustain above it indicating weakness in the uptrend for the day . Nifty reversed from here and went on to trigger our short for the day and touched 1 target on the short side giving just another 12 points from the short trade .Had mentioned in the post for Friday 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 and we saw shorts get triggered . 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 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 both days this week as Nifty made a low of 8690.50 and closed just above 8700 today . Now we have just 2 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 8768 - 8792 levels and above that upto 8850 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 8726 we can see a initial move upto 8747 & on sustaining above 8753 we may see further upmove till 8791. Similarly if Nifty spot sustains below 8686 we may see a initial move on the downside upto 8665 & on sustaining below 8660 we may see a further downmove till 8622
Nifty Spot Levels for the day are
Long above 8726 for 8739 - 8753 - 8791 , SL 8700
Short below 8686 for 8674 - 8660 - 8622 , SL 8713
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