Nifty-Technical Observation For The Week Starting From-22-9-14

NIFTY CLOSED AT 8121.45 ON 19-9-14

Range for the week ended on 19-9-14:- 8160.90--- 7925.15

SUPPORT: - 8121 / 8116 / 8105.50 / 8049.85 /7990.35 / 7984 / 7968.25 / 7954.35 /7855.95 / 7840.95 / 7808.85 / 7700.05 / .

 RESISTANCE:-  8141.90 / 8160.90 / 8180.20 / 8210 / 8294 / 8330.

  (Figures in bold are important)

Nifty opened the week under review on a negative note and made a low and bottom at 7925.15 on 16-9-14 and thereafter moved up sharply and made a high of 8160.90 for the week before closing the week at 8121.45.The movement in last three days of the week was hugely positive  and indicate that if it sustain above 8117 then it can surpass previous all time high of 8180.20,chances of which are looking quite good. The nifty is in good momentum therefore I suggest to buy on dip at appropriate level with an adequate stop loss.  

TECHNICAL VIEW

ON DAILY CHART:-It is looking good on the chart, furthermore it is also above all its short term moving averages and the range for averages are between 8079—8018 for 22-9-14 (it changes every day) therefore I suggest to buy on dip but get alerted in long trade if it starts trading below 8079 and exit long trade if it closes below 8018 and stays. Kindly note that going up it will face good resistance at 8141.90 / 8160.90 & 8180.20.

ON WEEKLY CHART:-  It is ok on the chart . Furthermore it is reasonably above the upper band of the short term DMA range which is between 7950--7607(for the next week) starting from-22-9-14.

Kindly note that there has been positive closing in the nifty for last six weeks, so with every passing up week closing it is becoming vulnerable for a correction on the weekly basis so please be vigilant in long trade.

REMARK:- Long term trend is still up, correction started last week seems to be over, therefore I suggest to buy on dip with a stop loss of close below 8018 . 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