Saturday, 22 October 2016

Weekly Spot Outlook of Nifty for 24th to 28th October

NIFTY

This week Nifty spot went down 77 points and then went up 144 points over last weeks close and finally ended the week with a gain of 110 points compared to last weekly closing . 


Last week had mentioned that Nifty Spot needs to break and sustain above 8649 to confirm uptrend and Nifty spot needs to break and sustain below 8518 to confirm downtrend for the week. Nifty made a high of 8727 and a low of 8506.15 for the week.

This week  Nifty triggered our short trade and reversed immediately to trigger our long trade and achieved our initial 3 targets giving around 100 points . Further upmove confirmation was above 8735 for this week which did not happen . Had mentioned in the weekly post 5 weeks ago that '8900 is our trend continuation level for September' and we saw Nifty close below 8900 indicating weakness in the current uptrend and it can make us go back to test the breakout levels of 8735 if global markets also turn weak' and also that 'We also have a support now at 8673 below 8735 and only on a consecutive closing below 8673 we can expect a test of 8520 - 8515 levels incase of a deeper correction' and we have corrected all the way till 8506.15 in the week gone . We have seen a correction of 450 points from the highs of September now.  Nifty closed above 8649 which was our confirmation level to go long and those who have carried over their long positions should keep a cbsl of 8649 now.  Had mentioned last week 'Incase of a break of 8520 - 8515 levels ,  Nifty has a small support near 8480 - 8464 levels' and ' If Nifty holds 8522 on closing then we should see a retest of 8673 - 8735 levels and above it till 8812 levels' and we saw Nifty make a high of 8727 this week after giving a borderline close at 8520.40 . Nifty has closed below just below 8700 and now has immediate resistance near 8735 - 8755 zone and breaking and sustaining above it we can see it test 8815 - 8849 levels. IF Nifty gives a consecutive close above 8755 we may see it test higher levels . We are entering the expiry week for October series in F & O and one can expect some interesting moves.


For the month of October we can expect uprend in Nifty spot on a consecutive close above 8755 and downtrend continuation would be on a consecutive close below 8467


In the coming week Nifty spot needs to break and sustain above 8769 to confirm uptrend and then one can expect a move till 8849 initially and breaking and sustaining above 8869 will give further confirmation for the next move which can take us up till 9013. Similarly Nifty spot needs to break and sustain below 8617 to confirm downtrend and then one can expect a move till 8537 initially and breaking and sustaining below 8517 will give further confirmation for the next move which can take us down till 8373 . 


Nifty Spot Levels for the week are

Long above 8740 , Tgt  8769 - 8792 - 8815

IF Nifty spot manages to get a close / sustain above 8849 then ,

long again for 8869 - 8938 - 9013

Short below 8646 , Tgt 8617 - 8594 - 8571

IF Nifty spot manages to get a close / sustain below 8537 then, 

short again for 8517 - 8448 - 8373


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.