Saturday, 21 January 2017

Weekly Spot Outlook of Nifty for 23rd to 27th January

NIFTY

This week Nifty spot went up 60 points over last weeks close , then went down by 59 points and finally ended the week with a loss of 51 points compared to last weekly closing.


As per levels given for the previous week Nifty Spot needed to break and sustain above 8442 to confirm uptrend and Nifty spot needed to break and sustain below 8359 to confirm downtrend for the week. Nifty made a high of 8460.30 and a low of 8340.95 for the week.

This week Nifty triggered our long trade and completed 2 targets giving around 30 points from the long trade . Had mentioned in the previous weekly post ' Now Nifty needs to sustain above 8442 this week for the upmove to continue till 8575 with resistance near 8467 - 8485 ' and we saw that Nifty broke above 8442 on 2 consecutive days but could not sustain or close above it to give confidence to stay or take long positions . Nifty then reversed to correct and also triggered our short trade for the week on Friday and completed 2 targets on the short side . Nifty had made a low of 7893.80 in December from the high of 8968.70 made in September and after caution was advised for longs in September once 8900 was breached on closing . Have been mentioning since November in the weekly posts 'Those who are holding positional longs or those who are looking to enter on dips should keep a strict CBSL of 7895 for their positions.' and we saw Nifty make a low of 7893.80 in the last week of December and reverse by around 560 points till last week  . Had mentioned in the previous weekly post 'Now Nifty needs to sustain above 8442 this week for the upmove to continue till 8575 with resistance near 8467 - 8485 ' , the levels worked well and we saw Nifty reverse from near 8461 by 100+ points.  Now this week Nifty needs to sustain above 8396 for the upmove to continue till 8546 with resistance near 8424 - 8445 . IF Nifty sustains below 8303 this week then we can see a downmove till 8153 with support near 8274 - 8254 levels . Those who are looking to enter longs near the support levels of 8274 - 8254 should keep a strict CBSL of 8230 . Once Nifty breaks and sustains below 8325 we can see the support levels of 8274 - 8254 being tested. 

For the month of January we can expect uptrend in Nifty spot on a consecutive close above 8329 and downtrend continuation would be on a consecutive close below 8043


In the coming week Nifty spot needs to break and sustain above 8396 to confirm uptrend and then one can expect a move till 8445 initially and breaking and sustaining above 8457 will give further confirmation for the next move which can take us up till 8546. Similarly Nifty spot needs to break and sustain below 8303 to confirm downtrend and then one can expect a move till 8254 initially and breaking and sustaining below 8242 will give further confirmation for the next move which can take us down till 8153 . 


Nifty Spot Levels for the week are

Long above 8378 , Tgt  8396 - 8410 - 8424

IF Nifty spot manages to get a close / sustain above 8445 then ,

long again for 8457 - 8499 - 8546

Short below 8321 , Tgt 8303 - 8289 - 8274

IF Nifty spot manages to get a close / sustain below 8254 then, 

short again for 8242 - 8199 - 8153


P.S. Always wait for the yellow highlighted levels to be crossed after taking a long/short position for confirmation of the trade . Once the highlighted levels are crossed and the next target is achieved move your Stoploss to the highlighted levels .

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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.