Nifty spot opened at 8671.50 and made a high of 8681.55 , then went down till 8541.35 before closing at 8573.35 . Had mentioned that long positions can be taken above 8736 and short positions can be taken below 8682 for the day . Nifty triggered our short trade and completed all our daily targets and corrected further by 50 points . Nifty also triggered our weekly shorts and completed nearly our initial 4 targets giving us around 130+ points for the day . As per our weekly levels we need to get a consecutive close below 8550 - 8531 zone to get a confirmation for further correction. Nifty had given a close above our uptrend level of 8755 on last Tuesday but it could not give a consecutive close above it and today broke below the support zone of 8716 - 8673 and immediately went down till 8550 levels . Nifty has resistance as mentioned in the previous posts near 8772 - 8813 zone and we need to break above it convincingly or close above it to head back towards 8900 - 8950 levels of September . Had mentioned in the previous post that ' If Nifty breaks and closes below 8716 - 8673 zone then we may retest 8550 levels again ' and today we saw that happen . Also as mentioned "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" . Incase we break below this support then we have our next immediate supports at 8480 - 8464 as mentioned in the weekly post too . If Nifty manages to give a consecutive close above 8755 along with Bank Nifty also closing above 19737 levels then we can look forward to testing September month highs . If Nifty breaks below 8552 - 8522 supports and tests our next supports of 8480 - 8464 and does not sustain below it , then we can again see it move up to test our resistance at 8673 - 8716 initially . Nifty has its weekly closing too and it would be interesting to see whether bears are able to get a close below 8500 after the momentum built today.
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 8604 we can see a initial move upto 8636 & on sustaining above 8644 we may see further upmove till 8702. Similarly if Nifty spot sustains below 8543 we may see a initial move on the downside upto 8511 & on sustaining below 8503 we may see a further downmove till 8445
Nifty Spot Levels for the day are
Long above 8604 for 8623 - 8644 - 8702 , SL 8564
Short below 8543 for 8524 - 8503 - 8445 , SL 8583
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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.