Nifty-Technical View(3-7-14)

Nifty closed at 7725.15 on 2-7-2014 

SUPPORT  :- 7700.05 / 7649.50 / 7629 / 7611.35 / 7593.35 / 7487.55 / 7481.30 / 7477/  7441.60 / 7409 / 7340 / 7263 / 7229/7200

RESISTANCE:  7855 / 7990

Nifty opened with a gap up(gap area7649.50—7677.30) and  moved up steadily and made new all time high of 7732.40 during the day before closing the day near the high, it was a robust move today and it may continue, but kindly note that  it made no effort to fill the gap during the day and furthermore it is  yet to make higher bottom on the line chart therefore it may still come down on closing basis on the line chart to make higher bottom and to fill the gap also, so as of now the bench mark level for nifty is 7700.05 and then 7629 &7611.35(for the month of July-14) and the short term DMA which is placed at 7566 for 3-7-14 for the long trades, if nifty starts trading below 7700.05 on 3-7-14 then get alerted and reduce long exposure and below 7629 & 7611.35 avoid long calls completely in nifty till it bounce back above this level again.

REMARK:-Long term trend is up and it is buy on dip market as of now. I feel that nifty could give down closing on 3-7-14 to make higher bottom on the line chart and to fill the gap of today therefore I would suggest to avoid long trades on nifty if it starts trading below 7700.05.Trade  cautiously 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. 

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