Nifty-Technical Observation For-11-9-14

NIFTY CLOSED AT 8094.10  ON 10-9-14

SUPPORT: - 8086.85 / 8049.85 /7990.35 / 7968.25 / 7954.35 /7855.95 / 7840.95 / 7808.85 / 7700.05

RESISTANCE:- 8132.95 / 8141.90 /  8180.20 / 8210 / 8294 / 8330.

   (Figures in bold are important)

Nifty opened on a negative note at 8135.55 and almost the open was the high for the day at 8135.75 and thereafter it gradually moved down throughout the day and made a low of 8082.10   before closing the day near the low at 8094.10. Today it has broken the upper band of short term DMA after quite some time and the range for it is between 8115—7960(it changes every day)for 11-9-14,since the break is not decisive it is expected  to bounce back above the averages in a day or two but if it fails to do so then it can trigger bigger down move ,since it has broken the upper band of short term DMA ie.8115 therefore I would suggest to avoid fresh long call till it bounces back above it  and stays but for those who are already having long position can hold on to it and get alerted  if it starts trading below 8040 and exit long trade if it closes below 7960 and stays. Please note that it has recently made bottom at 8049.75 therefore I suggest to avoid fresh long call below this point for sure. Kindly note that going up it will face good resistance at 8141.90 & 8180.20.

REMARK:- Long term trend is still up, but today’s move indicate that it may trigger down correction , so avoid fresh long call till it bounces back above the short term DMA again,  avoid   long call below 8049.85 for sure. Avoid impulsive trade .

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move 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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