Nifty-Technical View-29-9-14

NIFTY CLOSED AT 7968.85  ON 26-9-14

SUPPORT: - 7968.25 / 7954.35 /7925.15 / 7855.95 / 7840.95 / 7808.85 / 7700.05.

 RESISTANCE:-7990.35 / 8039 / 8049.85 / 8057.30 / 8141.90 / 8160.90 / 8180.20 / 8210 / 8294 / 8330.

   (Figures in bold are important)

Nifty moved as envisaged (see my post for 24-9-14) and broke the bottom of 7925.15 & 7855.95 and made a low of 7841.80 before closing the week at 7968.85.There is no doubt that nifty has lost the momentum and the sharp bounce back from the low of 7841.80 seems just a pull back and in this move it is not expected to go beyond 8039 & 8082 level at the maximum. Therefore it is sell on the rise market for sure as of now, think of going long only if it moves above 8085 and stays for 3-4 days OR above 8180.20.I would prefer to go long only if it moves above 8180.20 and stays for 2-3-days.Kindly note that now if it breaks the level of 7840 it will get support at 7784 / 7700 / 7593 & 7540, and if it fails to hold the level of 7700 then it may test the bottom of 7540,chances of breaking the bottom of 7840 looks reasonably bright in coming days. Please also note that I would avoid long call completely now but contrarian and aggressive trader can try long call near the critical bottom at 7925.15 & 7841 with an adequate stop loss.

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