Nifty Technical View-16-10-14

NIFTY CLOSED AT 7864  ON 14-10-14

SUPPORT: - / 7855.95 / 7841.80 / 7808.85 / 7796 / 7784 / 7700.05 / 7593 / 7540.10 / 7422.15.

 RESISTANCE:- 7925.15 /7960.50 / 7964.80 /7972.35 / 8030.90 / 8141.90 / 8160.90 / 8180.20.

   (Figures in bold are important)

Nifty opened with a up gap today at 7923.25 and made a high of 7928 and then slipped down in the red  within 30 minutes of trade  and made a low of 7825.45 during the day before closing the day at 7864.Today’s move indicate  that It is not showing strength on the up side  range but it is also finding good support in the region of  7825-7796, it seems that it has made a short bottom at 7796 ,but it is still below its short term moving averages and far below the recent  top of 7972.35,therefore the broad range for the nifty is now 7973-7796.It is still sell on the rise market technically but avoid  fresh short call if it moves above 7915(this figure change every day) and stays furthermore if it moves above 7973 and stays then we could see a reasonable further up move may be up to 8100-8160.Kindly note that those who are already having short position can hold on with a stop loss of close above 7930 and one can initiate fresh short call below 7800 with a stop loss of 7845 because break below 7800 can take nifty to 7700 level or may be below that also. Since it seem that a short bottom is in place at 7796 therefore I would suggest to wait and watch to initiate fresh trade till the range on either side is broken i.e 7915 or 7800.The aggressive trader can try long call on the dip with a stop loss of  close below 7790.

REMARK:- Long term trend is still up but it is in intermediate downtrend  and since the range for the nifty is now 7915-7796 therefore I suggest to wait and watch to initiate fresh trade till the either side of the range is taken out.  

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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