Nifty spot opened at 8770 and made a low of 8736.10 , then went up till 8783.65 before closing at 8769.15 . Had mentioned that long positions can be taken above 8758 and short positions can be taken below 8718 for the day . Nifty opened gap up above our long trigger then dipped below it giving a good entry for the long trade but could not complete any targets . Though Nifty has given a close today above our uptrend level of 8755 we would need a consecutive close above it tomorrow to hold long positions else we may retest again 8673 - 8716 levels again . We were expecting a directional move after the RBI policy today and inspite of the expected rate cut we could not see a big move . Had mentioned in the previous post that ' We may face some resistance near 8772 - 8813 levels tomorrow ' and we saw Nifty take some resistance near 8784 levels today . Nifty had been taking support near 8515 - 8500 levels in the entire month of August & has managed to take support near 8550 levels in the month of September , so one can expect good support in the zone of 8552 - 8522 for now. Incase we break below this support then we have our next immediate supports at 8480 - 8464 as mentioned in the weekly post too . Nifty had comfortably broken above 8673 - 8716 in the previous session which was the immediate resistance zone above 8602 - 8637 levels and has managed to sustain above it for the second day . If Nifty manages to give a consecutive close above 8755 again then we can see a upmove till 8900 levels . Today though Nifty has closed above 8755 but Bank Nifty has failed to close above its trend continuation level of 19737 after testing it and we would need both to confirm the upmove.
For the month of October we can expect uptrend in Nifty spot on a consecutive closing above 8755 and downtrend to continue on a consecutive closing below 8467 .
For today if Nifty spot sustains above 8802 we can see a initial move upto 8836 & on sustaining above 8845 we may see further upmove till 8907. Similarly if Nifty spot sustains below 8737 we may see a initial move on the downside upto 8702 & on sustaining below 8694 we may see a further downmove till 8632
Nifty Spot Levels for the day are
Long above 8802 for 8822 - 8845 - 8907 , SL 8759
Short below 8737 for 8717 - 8694 - 8632 , SL 8779
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