Nifty-Technical View For-19-9-14

NIFTY CLOSED AT 8114.75  ON 18-9-14

SUPPORT: - 8105.50 /8070.35 / 8057.30 / 8049.85 / 7990.35 / 7968.25 / 7954.35 / 7855.95 / 7840.95 / 7808.85 / 7700.05 / .

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

   (Figures in bold are important)

Nifty opened on a negative note and made a  low of 7939.70 and thereafter steadily moved up and made a high of 8120.85 before closing the day near the high at 8114.75.The bottom of 7925.15 identified yesterday proved to be bang on and today nifty gave a stupendous rise and bounced back above the upper band of the short term DMA range .The range for 19-9-14 is between 8076---8007(it changes every day). Today’s move indicate that the down correction  may be over but for confirmation it has to stay above the upper band of the short term DMA for another 2-3 days, if it sustain above it then a significant up move could be expected. Since it is above the averages now therefore on can buy on dip and get alerted in long trade only if it starts trading below 8076 and get out of long trade if it closes below 8007 and stays. Kindly note that going up it will face good resistance at  8141.90 & 8181 .

REMARK:- Long term trend is still up, It seems that the correction may be over therefore I suggest to buy on dip with a stop loss  of below 8007. 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