Nifty-Technical Overview-24-9-14

NIFTY CLOSED AT 8017.55  ON 23-9-14

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

RESISTANCE:-8049.85 / 8057.30 / 8084.45 / 8121.45 / 8141.90 /  8160.90 /  8180.20 / 8210 / 8294 / 8330.

   (Figures in bold are important)

Nifty opened on a flat note and made a high for the day at 8159.75 and thereafter moved in a range for  some time before taking a downward plunge in the late afternoon and made a low of 8008.10 before closing the day near the low at 8017.55.As expected it did not get past 8160.90 today and hence big fall(see my post for 23-9-14), kindly note that it did not sustain above the short term moving averages for 2-3 days when it bounced back  above it on 18-9-14 (see my post for 19-9-14) and it fell below  all its short term moving averages again on the 3^rd day today, which show gross weakness in it and particularly last three days move  indicate that the high of 8180.20 it made on 8-9-14  has been a potential top and it seems difficult for nifty to cross it at least for some.

 Since it is below its all short term moving averages therefore long trade is a complete avoid for me until and unless it bounces back above it again and stay for 3-4 days. The range for short term DMA is between 8073---8030(it changes every day) for 24-9-14.Please note that if it fails to hold the level of 7984 then chances are good  that it will break the recent bottom of 7925.15 it made on 16-9-14 and then 7855.95 made on 21.8.14.One can try short call on the rise with an adequate stop loss. Kindly note that going up it will face good resistance at 8085 / 8122 / 8160.90 & 8180.20 .

REMARK:- Long term trend is still up, but since it below its all short term moving averages therefore long trade is completely ruled out till it bounces back above it again and stay for 3-4 days ,on the contrary one can try short call here on the rise with a stop loss of close above 8090. 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