Nifty-Technical View-17-10-14

NIFTY CLOSED AT 7748.20 ON 16-10-14

SUPPORT: -   7700.05 / 7593 / 7540.10 / 7422.15.

 RESISTANCE:-7784 / 7808.85 / 7841.80 / 7855.95 / 7915.75 / 7925.15 /7960.50 / 7964.80 /7972.35 / 8030.90 / 8141.90 / 8160.90 / 8180.20.

   (Figures in bold are important)

Nifty opened on a negative note at 7837.30 and then made a high of 7893.20 for the day  and thereafter moved in the range of 7825-7860 for quite some time before plunging down in the 2^nd half and made a low of 7729.65 before closing the day near the low at 7748.20.Today it broke the last important trend-line also which indicate gross weakness in it and furthermore it is still way below its short term moving averages,  therefore it is  sell on the rise market for sure, however in between pull back rally could be there but those rally should be utilized to sell. Now the strong support for nifty is at 7700 and break below this can drag nifty down to 7593 & 7540 level chances of which are looking pretty bright in coming days and going up it will face resistance at 7855 & 7928.Please get alerted in short call if it moves above 7855 and avoid fresh short call if it moves above 7928 and stays. I would avoid long call completely because the trend is down and I don’t prefer to go against the trend but  contrarian and aggressive trader can try long call now for an expected pull back  with a stop loss below 7700.I would personally  avoid long call completely.

REMARK:- Long term trend is still up but it is in intermediate downtrend  therefore it is sell on the market at appropriate level with an adequate stop loss.  

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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