Nifty-Technical Overview For 17-9-14

NIFTY CLOSED AT 7932.90  ON 16-9-14

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

 RESISTANCE:-  7954.35 / 7968.25 / 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 negative note at 8036.60 and made high for the day at 8044.90 and thereafter sharply went down and made a low of 7925.15 before closing the day near the low at 7932.90.Today it has decisively  broken all its short term moving averages, which indicate gross weakness in it ,it has also broken the important level of 7937  and if stays below it for 1-2 days then it is expected to come down to 7850 mark, chances of which are looking reasonably good and break below 7850 can take it to 7790 &7700 level. Since it is below all its short term moving averages, therefore avoid fresh long call till it bounces back at least above its lower band of the DMA range and stays but I would prefer to take long call only if moves above the upper band of the DMA and stays. The range for 17-9-14 is between 8089---7997 (it changes every day) .Kindly note that going up it will face good resistance at 7990.35 /8049.85 / 8070.35 / 8105.50 & 8141.90 .

REMARK:- Long term trend is still up, but correction has set in , therefore I suggest 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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