Saturday, 20 October 2018

Weekly Spot Outlook Of Nifty for 22nd to 26th Oct

NIFTY

This week Nifty went up by 238 points , then went down by 223 points before finally ending the week with a loss of 169 points compared to last weekly closing. Nifty again gave a negative close on weekly basis after the positive close in previous week. 

As per levels given for the previous week Nifty Spot needed to sustain and close above 10665 to trigger uptrend and Nifty spot needed to sustain and close below 10290 to trigger downtrend for the week. Nifty made a high of 10710.15 and made a low of 10249.60

As mentioned in the previous weekly post " 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 are 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 ." , and we saw Nifty make a high of 10710.15 with a gap up opening but it could not sustain and got sold off immediately . On friday Nifty triggered our short trade and did nearly 2 targets but closed marginally above our short confirmation level .

Had mentioned in the last week post that " 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." , and we saw a good sell off from the resistance levels.


Now in the coming week Nifty needs to break and sustain above 10445 to test 10600 - 10635 initially and above it we can see a test of 10765 - 10910 . Breaking and sustaining below 10160 we can see a test of 10010 - 9970 initially and below it we can see a test of 9840 - 9700. Those who looking to enter fresh longs should wait for Nifty to sustain / close above 10445 to enter with a stoploss of 10345 and look to hold further only on getting a close above 10595 - 10635 zone . Those who are looking to enter fresh shorts should wait for Nifty to sustain / close below 10160 to enter with a stoploss of 10260 and look to hold further only on getting a close below 9845 - 9700 zone . Incase of a bounce towards 10400 aggressive shorts can look at shorting with a stoploss of 10450.


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 . Stoploss for positional shorts is at 10890 this month. 



Nifty Spot Levels for the week are

Long above 10395 , Tgt  10445 - 10490 - 10535

IF Nifty spot manages to get a close / sustain above 10600 then ,

long again for 10635 - 10765- 10910

Short below 10215 , Tgt 10160 - 10115 - 10075

IF Nifty spot manages to get a close / sustain below 10010 then, 

short again for 9970 - 9840 - 9700

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.