Nifty-Technical Observation For -16-9-14

NIFTY CLOSED AT 8042  ON 15-9-14

SUPPORT: -7990.35 / 7984 / 7968.25 / 7954.35 /7855.95 / 7840.95 / 7808.85 / 7700.05 / .

RESISTANCE:-   8049.85 / 8057.30 / 8070.35/8105.50 / 8141.90 /  8180.20 / 8210 / 8294 / 8330.

   (Figures in bold are important)

Nifty opened on a negative note at 8070.35 and made a high of 8077.30 for the day and thereafter went down and made a low of 8030 before closing the day near the low at 8042.It was below the short term moving average for the last three days and today it has broken the recent bottom of 8049.85 which indicate that  a deeper correction may set in, but generally  in bull market correction don’t last for too long therefore the possible correction completion  points are 8103 / 8056 / 8018 / 7979 / 7937 from where nifty could bounce back. Kindly note that if it breaks the 7937 mark and stays then there could be potential threat of it going down further and sharply too. Since it is below the upper band of the short term DMA range and the range for 16-9-14 is between 8106---8000 therefore I suggest to avoid fresh long call till it bounces back above the short term DMA upper band and stays and for those who are already having long trade can hold on to it now and exit trade if it closes below 8000 and stays. Kindly  note that going up it will face good resistance at 8105.50/ 8141.90 / 8150 & 8183.AVOID FRESH  LONG CALL COMPLETELY BELOW 8057.30  FOR THE ENTIRE WEEK.

REMARK:- Long term trend is still up, today’s move indicate that possibly deeper  correction may set in ,therefore I suggest to avoid fresh long call till it bounces back above the upper band of the short term DMA range and stays. 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

Contact me for strategic guidance to enter and exit the trade