Nifty closed at 7623.20.15 on 8-7-2014
SUPPORT: - 7611.35 / 7593.35 /7563.50 7487.55 / 7481.30 / 7441.60 / 7360 / 7229/ 7206 /7118.45 / 7067.15 / 7020.05
RESISTANCE: 7629 / 7663 / 7700.05 / 7751.60 / 7758 / 7780.40 / 7808.85 / 7860 / 7990 / 8050 / 8125.
(Figures in bold are important)
Nifty opened firmly today and made new all time
high of 7808.85 and the then plunged down and made low of 7595.90 before
closing the day near the low point. In today’s down move it has broken all
weekly support levels of 7780,7758 & 7751.60 and monthly support level of
7700.05 & 7629for July-14 except for one at 7611.35 on the closing basis,it has also broken all
short term moving averages except for one which is at 7593 for 9-7-14(it keeps
on changing every day) and also the recent closing bottom 7714.80 which suggest
that this down move may continue for few days but since one major event of General
Budget is lined up for 10-7-14 nothing can be said convincingly. Therefore avoid long calls completely if
nifty starts trading below 7611.35 and only try to go long if it moves above
7629 and stays with a stop loss of 7600.
You would recall that the nifty had given
negative divergence (see my earlier post) on the chart earlier and since it is
below its all short term DMA again therefore the negative divergence could come
into play now and may break the level of 7402 & 7229, so to negate the
divergence it has to move above its short term DMA which is placed at 7685 for
9-7-14.
Seeing today’s move nifty is expected to go down,
if it does then it could bounce back
from these levels 7533 / 7481.30 /
7441.60 or from 7396 -7311 which is one
of the long term moving average range for 9-7-14(it keeps on changing every
day). One can try long call near the aforesaid moving average range considering it as potential support area.
REMARK:-Long term trend is still up but
avoid long call till it is visible that the fall in nifty is arrested. Please
use support and resistance point as entry, exit and trailing stop loss point to
make your trade profitable.
Contact me for strategic guidance to enter and
exit the trade
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Thank you for sharing your views.