Dated :- 04.12. 2016                                 NIFTY SPOT : 8086.80

Hi readers,

Nifty moved exactly as was mentioned in my previous blog dated Nov 27, 2016.

It was mentioned that I would like to play contra near the trading range level of 8000 to 8280.

Nifty first made a low of 8066 giving a buying opportunity and rebounded from there and after that made a high of 8250 giving selling opportunity and fell from there again and made a low of 8070. Thus Playing contra helped.

Readers would have liked the movement of Nifty and would have benefitted.

Now What -

Nifty has closed at 8086.

Now the level of 8188 closing basis will act as resistance for Nifty.

Till then expect Nifty to trade with -ve bias.

However, I would like to see Nifty's behavior on lower side around 7950 to 7980 levels. Because for me 7950 to 7980 around levels are important levels. Which has all the ingredients to act as important support.

This coming week is action packed week.

We have RBI Credit policy also and ITALY Referendum results in the start of the week.

Thus try not to carry any positions home in initial part of the week.

Now let us understand the Nifty outlook and expectations.

Actually problem area is Bank Nifty.

It has closed at 18247 and is showing weakness.

Key level for Bank Nifty is 18100 spot. Continuous close below this level will open gates for lower levels.

If Nifty take support around 7950 to 8000 levels and Bank Nifty around 18100 spot levels and starts rebounding from there and with the tail wind of positive or neutral news from ITALY and +ve news from RBI Policy with market. I would not hesitate in buying early also and will not wait for 8188 level to break. The stop loss in that case would be 7950 closing basis.

Point is, that, key for the coming week is with Bank Nifty as its ADX has reached 30.79 and RSI at 38. And key level at 18100. And at present it is showing weakness. If it negates its weakness and does not fall, rather starts taking support and starts rising then we do not have any problem in buying Bank Nifty and Nifty both.

Do not run for the trade, wait, watch and analyse the movement and then step in.

Note - ALL THE LEVELS ARE OF NIFTY SPOT ALWAYS.