Saturday, 4 February 2017

Weekly Spot Outlook of Nifty for 06th to 10th February

NIFTY

This week Nifty spot went down 104 points over last weeks close , then went up by 116 points and finally ended the week with a gain of 100 points compared to last weekly closing.


As per levels given for the previous week Nifty Spot needed to break and sustain above 8699 to confirm uptrend and Nifty spot needed to break and sustain below 8583 to confirm downtrend for the week. Nifty made a high of 8757.60 and a low of 8537.50 for the week.

This week Nifty triggered our short trade initially and achieved our initial 3 short targets giving us 60 points . Further shorts was to get confirmed on breaking and sustaining below 8522 which did not happen and Nifty reversed to move up and then triggered our long trade and completed our initial 3 long targets giving around 60 points from the long trade too .Nifty has so far made a low of 7893.80 from the high of 8968.70 made in September 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.' . We saw Nifty make a low of 7893.80 in the last week of December and reverse by around 860+ points till now . Now Nifty needs to sustain above 8809 this week for the up move to continue till 9028 with resistance near 8850 - 8880 levels . Breaking and sustaining below 8673 this week we can see a down move till 8454 with support near 8631 - 8601 levels

For the month of February we can expect uptrend in Nifty spot on a consecutive close above 8696 and downtrend in Nifty spot on a consecutive close below 8427 . Had mentioned in January that we can expect uptrend in Nifty spot on a consecutive close above 8329 and we got a move of nearly 400+ points from there . 

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. Incase 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 the positions.

In the coming week Nifty spot needs to break and sustain above 8809 to confirm uptrend and then one can expect a move till 8880 initially and breaking and sustaining above 8899 will give further confirmation for the next move which can take us up till 9028. Similarly Nifty spot needs to break and sustain below 8673 to confirm downtrend and then one can expect a move till 8601 initially and breaking and sustaining below 8583 will give further confirmation for the next move which can take us down till 8454 . 


Nifty Spot Levels for the week are

Long above 8783 , Tgt  8809 - 8830 - 8851

IF Nifty spot manages to get a close / sustain above 8880 then ,

long again for 8899 - 8960 - 9028

Short below 8699 , Tgt 8673 - 8652 - 8631

IF Nifty spot manages to get a close / sustain below 8601 then, 

short again for 8583 - 8522 - 8454


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.