Monday, 20 February 2017

Nifty Spot Outlook for 20th February

NIFTY


Nifty spot  opened  at 8883.70 and made a high of 8896.45 , went down till 8804.25 before closing at 8821.70 . Had mentioned that long positions can be taken above 8792 and short positions can be taken below 8764 for the day .  

Nifty opened with a huge gap up on the back of fresh FII buying window in Hdfc Bank . It opened above out last daily target and also near our initial 3rd long target for the week .Had mentioned in the previous post that ' In the previous session Nifty had confirmed our weekly shorts and also completed 2 targets but Bank Nifty was yet to confirm hence had mentioned that further correction till 8695 - 8668 would come only if Bank Nifty also confirms its weekly shorts else it would pull Nifty up too ' and we saw the same happen . On Nifty breaking above 8855 we were expecting resistance near our initial weekly resistance level of 8892 - 8919 and Nifty took resistance in that range .

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 900+ points after holding the cbsl of 7895 till now.    Those who are holding longs or intending to go long on a correction should keep a strict cbsl of 8660 spot for their positions .


Now for this week Nifty Spot needs to break and sustain above 8857 for long confirmationthen we can expect a move till 8879 - 8895 initially and closing above 8904 we can expect the next move till 8937 - 8972 . Similarly this week Nifty spot needs to break and sustain below 8786 for short confirmation, then we can expect a move till 8764 - 8749 initially and closing below 8739 we can expect a further move till 8707 - 8671' . 

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 . This month so far we have got a further move of 200 points after Nifty has closed above our long confirmation level.

Have been mentioning in the previous posts too 'Nifty is now near a resistance zone of 8780 - 8840 and has been taking resistance there. Nifty needs to break this zone and sustain above 8875 for a further up move. Incase Nifty is unable to break and sustain this range then we may see a correction from near 8840 - 8875 levels till 8650 - 8550 levels . Those who are holding longs or those who are looking to enter fresh longs on any corrections this week should keep a strict cbsl of 8737 spot for their positions. Nifty finally broke above the resistance zone of 8780 - 8840 but again closed within it .


For today if Nifty spot sustains above 8835 we can see a initial move on the upside till 8849 & on sustaining above 8853 we may see further move till 8879 . Similarly if Nifty spot sustains below 8808 we may see a initial move on the downside till 8794 & on sustaining below 8791 we may see a further move till 8765 . 


Nifty Spot Levels for the day are

Long above 8835 for 8843 - 8853 - 8879 , SL 8818

Short below 8808 for 8800 - 8791 - 8765 , SL 8826

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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.