Nifty spot opened at 8743.85 and made a low of 8704.35 , then went up till 8751.95 before closing at 8742.5 . We had mentioned that long positions can be taken above 8756 and short positions can be taken below 8698 for the day . Nifty once again consolidated the entire session between our short and long trigger of 8698 - 8756 today without triggering any trade .This is the second session in a row that Nifty has not triggered any trades indicating good consolidation is going on . Nifty had broken out at the start of this month from the range of 8735 - 8742 where it is facing resistance again now . Today Nifty managed to give a borderline close at 8742.55 and now it needs to sustain above it in the coming session to move up strongly . Had mentioned in the previous posts that "Am expecting Nifty to face resistance near 8970 - 9020 levels " and we saw Nifty make a high of 8968.70 and reverse on Friday and give a close below 8900 which was our trend continuation level indicating a short term reversal is possible if fails to close above 8900 this week. Had been mentioning since the beginning of August ' Closing or sustaining above 8735 - 8742 spot levels we can expect a target of 8835 and more ' , and we saw Nifty make a new high far this month at 8968.70 . Also have been mentioning in the previous posts that 'Now we have immediate supports at 8716 - 8673' and we saw Nifty taking support today for the third consecutive time this week within this range . Now we have immediate resistance near 8835 - 8855 levels once we break and sustain above 8735 - 8742 zone. Now for the coming sessions we need to closely watch 8673 levels which is also our trend reversal level for this month as breaking and sustaining below it can begin the next leg of correction towards the next immediate support of 8637 - 8602 and below it we have next supports at 8552 - 8522 levels . We have a cluster of supports between 8700 - 8500 levels and one should watch the price action as we near each support to decide the next trade. Also Nifty has been taking support near 8515 - 8500 levels in the entire August month so this zone should provide good support. A close above 8956 will take us back to test 9050+ levels
Trend reversal in Nifty for this month would be consecutive closing below 8673 and trend continuation would be on consecutive closing above 8900 spot .
For today if Nifty spot sustains above 8771 we can see a initial move upto 8801 & on sustaining above 8809 we may see further upmove till 8863. Similarly if Nifty spot sustains below 8714 we may see a initial move on the downside upto 8684 & on sustaining below 8676 we may see a further downmove till 8622
Nifty Spot Levels for the day are
Long above 8771 for 8789 - 8809 - 8863 , SL 8734
Short below 8714 for 8696 - 8676 - 8622 , SL 8751
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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.