Nifty-Technical View-5-8-14

NIFTY CLOSED AT 7683.65 ON 4-8-14

 SUPPORT: - 7662.50 / 7602.60 / 7593.90 / 7563.50 / 7487.50 / 7481.30 / 7447.20/ 7441.60 / 

7422.15 / 7206.70.

 RESISTANCE:-7602 / 7662.50 / 7700.05 / 7721.30 / 7731.05 / 7799/90 / 7808.85 / 7840.95 / 7873 / 8060 / 8125.

  (Figures in bold are important)

 Nifty opened on a positive note but did not breached the low and high of the previous day and made a low of 7622.05 and high of 7694.80for the day before closing the day near the high point at7683.65.It seems that today’s move was a sheer pull back of previous day’s steep fall. However it has moved above the lower band of the short term DMA range today and the range is between 7743—7660(it changes every day) for 5-8-14, therefore I suggest to avoid fresh long call till it moves above the short term DMA band ie.7743 and stays, however those who are having long position taken at the lower level and they still want to hold the position can take that chance with a stop loss of below 7568 but get alerted below 7662.50.I suggest to avoid long call below 7662.50 for the month of August-14 and below7639.55,7602.55 & 7593.90 for the entire remaining week . The possible strong support for nifty is at 7568(it changes every day)for 5-8-14 and if this is broken then nifty may head for reasonable to sharp fall .

REMARK:- Long term trend is up but avoid long call until and unless it moves above the short term DMA range ie.7743 for 5-8-14 and off course below 7662.50& 7639.55. Aggressive trader  can try short call on the rise or near 7740 with a stop loss of 7755.

 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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