Nifty-Technical Observation For-18-9-14

NIFTY CLOSED AT 7975.50  ON 17-9-14

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

 RESISTANCE:- 7990.35 / 8049.85 / 8057.30 /  8070.35 /  8105.50 / 8141.90 /  8180.20 / 8210 / 8294 / 8330.

   (Figures in bold are important)

Nifty opened on a firm footing and made high for the day at 7990.65 and then made a low of 7936.95 before closing the day at 7975.50.Today’s move indicate that it has made a short bottom yesterday at 7925.15 and may stage a pull back rally from here, if it does then going up the level of 7985 / 8023 / 8053 / 8083 / 8116 will pose resistance. The aggressive trader can go long on dip with a stop loss of below 7925 but Since it is still below all its short term moving averages and the range for short term DMA is between 8080—7796(it changes every day)for 18-9-14,therefore I would prefer to avoid long call till it bounce back above the upper band of the moving averages and stays i.e. above 8080 .Kindly note that going up it will face good resistance at 8057.30 / 8070.35 / 8105.50 & 8141.90 .

REMARK:- Long term trend is still up, but it seems that it has made  a short bottom at 7925.15 , therefore  aggressive trader can try long call on dip with a stop loss of below 7925 but I would prefer to avoid fresh long trade till it bounces back above its short term DMA upper band 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

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