Nifty-Tecnical Overview For The Week Starting From 16-6-2014

NIFTY CLOSED AT 7542.10 ON 13-6-14

Range for the week ended on 13-6-14 was:-7700.05 -7525.35

Range for the month of May-14 ended on was:-7563.50—6638.55

SUPPORT:-7525.35 / 7497.65/ 7484 / 7477 / 7409 / 7360.50 / 7340 / 7263 /  7206.70 /
7193.55 / 7118.45

RESISTANCE:- 7563.50 / 7678.50 / 7700.05 / 7855 / 7988 / 8011 /  8052 / 8195 / 8310

Nifty’s sharp down move today made most of us to think, is the Bull Run over ?. Off course not we are still in up trend but correction has set in and in strong bull market correction happens like this only and it may take few days to complete it or may also end it abruptly in 2-3 days time. so the trend is intact as of now.

Nifty made new all time high of 7700.05 on 11.6.2014 and went down sharply by 107.80 points on 13-6-14 and closed the week near the lowest point of the range and in the process it also broke short term DMA and important support of 7563.50 for the month which indicates that the down correction has set in and it will also make an effort to fill the gap it left behind in the range of 7484-7497.65 during this correction process, going down it will find good support at 7477 / 7400 / 7340 / 7263.

I expect the index to complete down correction in the range of 7380-7450 latest by 18-6-14 but if it goes below 7340 and stays then it can drag down the nifty to 7100 mark chances of which are looking slim as of now. On the other hand if it moves above 7563.50 and its short term DMA placed at 7585 for 16-6-14 and stays then it can be assumed that correction may be over.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price  moves  up/down to gain maximum profit and avoid losses.

                               

REMARKS:-Long term up trend intact but avoid long trade till it completes down correction One can try long trade near 7380-7400 with a stop loss of below 7340 or above 7585 with a stop loss of 7550.DO NOT TRADE WITHOUT STOP LOSS

 NOTE:-

1. PRICE STATED HERE IS OF SPOT MARKET.

          2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade