Nifty-Technical View For The Week Starting From-28-7-14

NIFTY CLOSED AT 7790.45 ON 25-07-14

Range for the week ended on 25-07-14 was:- 7840.95--- 7674

 SUPPORT: - 7731.05 / 7700.05 / 7674 / 7661 / 7629 / 7611.35 / 7593 / 7563.50 / 7487.50 / 7481.30 / 7447.20/ 7441.60 / 7422.15.

 RESISTANCE: 7808.85 / 7840.95 / 7873 / 8060 / 8125.

  (Figures in bold are important)

 Nifty opened firmly for the week under review and steadily moved up during the week and made new all time high of 7840.95 and closed the week at 7790.45.The long term trend is up but one should be very cautious in long trade and enter it with strict stop loss only.

TECHNICAL VIEW

1. ON DAILY CHART :-It made a bottom on the line chat at 7454.15  and  on the bar chart at 7422.15 on 14-7-14 and moved up for eight days in a row and made a closing top of 7830.60 on 24-7-14 and top on the bar chart at 7840.95 on 25-7-14 ,it was a vertical rise from 7422.15 to 7840.95,therefore chances are that if it  corrects downward that too can be in a  vertical manner also, going down it can find retracement support at these level.7742.11 / 7680.93 / 7631.51 / 7582.08 / 7526.79 and going up it will face stiff resistance at 7840.95.

Kindly note that negative divergence is still there but as of now nifty is above all its short term moving averages but it is very close to it and the range for short term DMA is between 7736—7660 (it changes every day, I will be updating it)for 28-7-14.I suggest to avoid long call below 7790.45 for the week starting from 28-7-14,if one already having long position then please get alerted below 7736 and get out of the long trade if it closes below 7660 on 28-7-14 and re-enter in long trade only if it moves above the short term DMA range again.

 2.ON WEEKLY CHART:-  It made a bottom on the line chart at 7459.60 on 11-7-14  weekend and on the bar chart at 7422.15 on 18-7-14 weekend, it is still moving up on the line chart and yet to make a closing top but on the bar chart it made a top of 7840.95 on 25-7-14 weekend, therefore it is likely that it may make a top on the line chart in the coming weekend by closing lower then this week.

The strong negative divergences are visible and if it comes into play then it could take nifty down to 7229 levels but as I always say that divergence should be viewed in sync with the moving average placements therefore look for moving average violation on the daily chart first, because the short term DMA range for the coming week is between 7603—7491.The negative divergence suggest caution in the long trade.

     REMARK:- Long term trend is up ,but avoid long calls below 7790 and below 7736—7660 for           sure,aggressive trader can try short call below 7730 with a stop loss of  7760.   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, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

                                             Note:-PRICE STATED HERE IS OF SPOT MARKET

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