Nifty-Technical View For The Week Starting From-14-7-14

 NIFTY CLOSED AT 7459.60 ON 11-07-14

Range for the week ended on 11-07-14 was:- 7808.85--- 7447.20

SUPPORT: -  7447.70/ 7441.60 / 7402.25/ 7382 / 7291 / 7229/ 7118.45 / 7067 / 7020.

RESISTANCE:  7504 / 7563.50 / 7593.35 / 7611.35 / 7629 / 7700.05 / 7808.85 /7851 / 7990 / 8050 / 8125.

 (Figures in bold are important)

Nifty had a wild swing during the week under review and it made an all time  high of 7808.35 and  a low of 7447.20 before closing the week near the low at 7459.60, this kind of move indicate that on going up move momentum has broken and it may seek lower level in the coming days for sure.However in between short up move on intra day basis or on closing basis could be there.

Technically nifty is badly placed, it has broken important bottoms on the line and the bar chart, it is below all its monthly(for July-14) support levels except for one which is at 7239.50,it is also below its all short term moving averages and just near its one of the long term moving average range which is in the region of 7447—7354 for 14-7-14(it keeps on changing every day, as of  now it will rise with each passing day),seeing overall movement during the week it seems that this range could be broken, below this next important long term average support would be near 6870-6900 range .

 Furthermore so long the negative divergence was there on the daily chart but now it has appeared on the weekly chart too almost confirming that nifty could break 7229 level and this could only be negated if nifty move above its short term DMA which is at 7647 for 14-7-14(it keeps on changing every day, as of now it will move down with each passing day) and stay above it for reasonable period of time,therefore try long call above short term DMA only.Avoid long call completely below 7447.20 during next week starting from 14-7-14 .The strong resistance for the month of July-14 is at 7611.35 & 7629.

 The technical parameter suggest that nifty could hit the range of 7206-7239.50 in coming days, therefore review the situation around the said range to ascertain whether the on -going fall has been arrested or not. Kindly note that 7020-7118 is a very good support area for nifty, so one can  try long call in this region.

                  

REMARKS:-Long term trend is still intact but short term trend is down, therefore I suggest to avoid long call completely till it is visible that the on -going correction is over, so as of  now one can try short call on the rise at appropriate level with an adequate stop loss . 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. Use support and resistance levels as entry, exit and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

Note:-PRICE STATED HERE IS OF SPOT MARKET

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