Nifty-Technical View-7-8-14

NIFTY CLOSED AT 7672.05 ON 6-8-14

 SUPPORT: - 7662.50 / 7639.55 /  7602.60 / 7593.90 / 7563.50 / 7487.50 / 7481.30 / 7447.20/ 7441.60 / 7422.15 / 7206.70.

 RESISTANCE:-7700.05 / 7721.30 / 7731.05 / 7799.90 / 7808.85 / 7840.95 / 7873 / 8060 / 8125.

  (Figures in bold are important)

 Nifty opened down by 20 points and could not cross even the previous day's close of 7746.55  and made a high of 7740.95 and low of 7658.95 for the day before closing the day near the low at 7672.05.It could not hold on to the yesterday’s gain today instead went down sharply by 74 points which shows gross weakness in it and this indicates that it could witness further reasonable to big fall in coming days. It has just closed above the lower band of the short term DMA range today and the range  is between 7739—7667(it changes every day) for 7-8-14, therefore fresh long call is a  complete avoid till it moves above the upper band of the short term DMA and stays, those who are still holding the long trades for them  the authentic stop loss s below 7593(it changes every day) for 7-8-14  below this point nifty will get support at 7540 & 7422. 

REMARK:- Long term trend is still up but it seems that we are in down correction and this may last for few days, therefore long call is a complete avoid for now until and unless it moves above the upper band of the short term DMA or try long call when it gives  visible sign of completion of down correction The expected region for aggressively trying the long call would be between 7100---7250 .As of now ,I would suggest to 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, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

                                             Note:-PRICE STATED HERE IS OF SPOT MARKET

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