Nifty Spot Outlook for 06th February

NIFTY

Nifty spot  opened  at 8735.15 and made a low of 8707.75 , went up till 8748.25 before closing at 8740.95 . Had mentioned that long positions can be taken above 8764 and short positions can be taken below 8704 for the day .  

Nifty traded the entire day between our long and short trade trigger levels indicating indecisiveness . Nifty completed 3 long targets as per weekly levels but could not break above its weekly resistance levels of 8761 - 8776 for a further move. 

Have been mentioning since November that ' A deeper downmove can be expected on a consecutive close below 7895 ' and we had seen Nifty make a low of 7893.80 in the last week of December. Nifty has gained nearly 860+ points after holding the cbsl of 7895 till now.   As mentioned in the previous posts ' Those who are holding longs or intending to go long on a correction should keep a strict cbsl of 8564 spot for their positions ' .

Now for this week Nifty Spot needs to break and sustain above 8809 for long confirmation, then we can expect a move till 8851 - 8880 initially and closing above 8899 we can expect the next move till 8960 - 9028 . Similarly this week Nifty spot needs to break and sustain below 8673 for short confirmation, then we can expect a move till 8631 - 8601 initially and closing below 8583 we can expect a further move till 8522 - 8452' . 

For the month of February we can expect uptrend in Nifty spot on a consecutive closing above 8696 and downtrend on a consecutive closing below 8427 . In January had mentioned 8329 closing as the long confirmation level for Nifty and we saw a move of 340+ points after Nifty gave a consecutive close above the monthly long confirmation level . 

Though Nifty has given a consecutive close above 8696 , it is currently near a resistance zone of 8760 - 8780 and it needs to break and sustain above this zone to move up further . IF Nifty is unable to break and sustain this range then we may see a correction from these levels till 8550 - 8450 levels. Those who are holding positional longs or those who are looking to enter fresh longs on any corrections this week should keep a strict cbsl of 8564 spot for their positions. 

For today if Nifty spot sustains above 8767 we can see a initial move on the upside till 8794 & on sustaining above 8801 we may see further move till 8849 . Similarly if Nifty spot sustains below 8715 we may see a initial move on the downside till 8688 & on sustaining below 8681 we may see a further move till 8632 . 

Nifty Spot Levels for the day are

Long above 8767 for 8782 - 8801 - 8849 , SL 8733

Short below 8715 for 8700 - 8681 - 8632 , SL 8749

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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.