NIFTY
This week Nifty went down by 178 points , then went up by 176 points before finally ending the week with a gain of 156 points compared to last weekly closing. This is the first positive weekly close after 5 consecutive negative weekly closing.
As per levels given for the previous week Nifty Spot needed to sustain and close above 10395 to trigger uptrend and Nifty spot needed to sustain and close below 10240 to trigger downtrend for the week. Nifty made a low of 10138.60 and made a high of 10492.45
As mentioned in the previous weekly post " Now in the coming week Nifty needs to break and sustain above 10440 to test 10575 - 10610 initially and above it we can see a test of 10720 - 10845. Breaking and sustaining below 10190 we can see a test of 10060 - 10025 initially and below it we can see a test of 9915 - 9790 . Those who are looking to enter fresh longs should wait for Nifty to sustain / close above 10440 to enter with a stoploss of 10355 and look to hold further only on getting a close above 10575 - 10610 zone . Those who are looking to enter fresh shorts should wait for Nifty to sustain / close below 10190 to enter with a stoploss of 10280 and look to hold further only on getting a close below 10060 - 10025 zone ." , and we saw Nifty initially trigger our short trade but failed to confirm it with a close below 10190 and on the last day of the week it confirmed our weekly longs with a close above 10440 .
In the past 5 weeks Nifty has given a negative close on a week to week basis by 91.40 , 73.90 , 372.10 , 212.65 & 614 points . After such a rapid fall in recent weeks we can expect a small pull back unless there is a strong fresh negative news which comes . On the upside Nifty has immediate resistance near 10585 - 10665 levels and above it near 10765 - 10845. One can expect selling pressure near the resistance levels.
Now in the coming week Nifty needs to break and sustain above 10665 to test 10845 - 10895 initially and above it we can see a test of 11055 - 11235 . Breaking and sustaining below 10290 we can see a test of 10100 - 10055 initially and below it we can see a test of 9890 - 9710. Those who looking to enter fresh longs should wait for Nifty to sustain / close above 10665 to enter with a stoploss of 10530 and look to hold further only on getting a close above 10845 - 10895 zone . Those who are looking to enter fresh shorts should wait for Nifty to sustain / close below 10290 to enter with a stoploss of 10415 and look to hold further only on getting a close below 10100 - 10055 zone .
As mentioned at the beginning of this month "For the month of October , longs will get confirmed in Nifty with a consecutive close above 11085 for a initial target of 11245 - 11290 and sustaining / closing above it we can see a further move till 11425 - 11580 . Similarly shorts will get confirmed with a consecutive close below 10775 for a initial target of 10615 - 10575 and sustaining / closing below it we can see a further move till 10435 - 10285 . In the month of September Nifty gave 700+ points from the short trade . " , and we saw Nifty confirm our monthly short trade and complete all our short targets and also exceed it by 150 points making a low of 10138.60 giving us 600 points from the monthly short trade . Nifty has strong resistance near 10775 - 10885 which needs to crossed strongly on a closing basis now for a stronger pullback and making the bear grip weak .
Now in the coming sessions Nifty needs to sustain / close below 10130 to begin the next round of correction towards 10060 - 9900 levels . Since we have fallen sharply we may see a small bounce this week but longs should be cautious as there is good resistance near 10585 - 10665 zone initially and above it near 10775 - 10885 zone and unless we get a close above 10890 the upmoves can get sold into again.
Nifty Spot Levels for the week are
Long above 10585 , Tgt 10665 - 10710 - 10765
IF Nifty spot manages to get a close / sustain above 10845 then ,
long again for 10895 - 11055- 11235
Short below 10360 , Tgt 10290 - 10235 - 10180
IF Nifty spot manages to get a close / sustain below 10100 then,
short again for 10055 - 9890 - 9710
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 and keep trailing your stoploss .
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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.
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