Nifty-Technical View For The Week Starting From 8-9-14

NIFTY CLOSED AT 8086.85 ON 5-9-14

Range for the week ended on 5-9-14:- 8141.90--- 7984

SUPPORT: -8049.85 / 7990.35 / 7984 /  7968.25 / 7954.35 /7855.95 / 7840.95 / 7808.85 / 

RESISTANCE:-  8141.90 / 8160 / 8183 / 8290 / 8330.

  (Figures in bold are important)

Nifty opened firmly with a up gap and made a low of 7984 during  the week under review and thereafter steadily moved  up and made new a new all time high of 8141.90  before closing the week  at 8086.85 but the gap still exist , last two days move indicate that correction may set in,if it does then the possible correction completion points are 8074 / 8032 / 7998 / 7965 / 7927 from where nifty can bounce back, kindly note that in bull market correction don’t last for long. . Therefore it is still buy on dip market but with caution. Kindly note that going up it will face good resistance at 8141.90 / 8160 & 8195

TECHNICAL VIEW

1.      ON DAILY CHART:-It looks good on the daily chart and reasonably above short term DMA upper range, but last two days move created some apprehension  that  correction may set in but I reiterate that in bull market correction don’t last for long therefore it is still buy on dip market but with extreme  caution .The short term DMA are moving up and the range is  between 8000—7883 (it changes every day) for 8-9-14.

But be alert in long trade  if it starts trading below 8000 and  exit  long trade if it closes below 7855 and stays.

2.      ON WEEKLY CHART:-  It is ok on the chart . Furthermore it is way above  the upper band of the short term DMA range which is between 7828—7493(for the next week) starting from-8-9-14.If it moves above 8141.90 and stays then it could move up to 8182 / 8220 & 8260 during the week similarly if it stays below 8086.85 then it could move down to 8047 / 8007 & 7968 level..

3. ON MONTHLY CHART:- It is ok on the chart and it ended the month  of August-14 near the high but it has been continuously moving up for the last four months and gave a stupendous rise of 1329.70 points. It rose from 6638.55 in May-14 to 7968.25 in August-14 and still rising therefore correction on the monthly basis looks imminent in the month of Septemper-14 but as of now there is no sign of it, so I suggest that one should be cautious in long trade. Above 7968.25 it can move upto 8183 / 8290 & 8396 level during the month of September-14

REMARK:- Long term trend is still up, therefore I would suggest  to adopt buy on dip strategy at appropriate level with proper stop loss. Avoid fresh long trade below 8000.

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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