Nifty-Technical View--20-10-14

NIFTY CLOSED AT  7779.70 ON 17-10-14

SUPPORT: -   7700.05 / 7593 / 7540.10 / 7422.15.

 RESISTANCE:-7784 / 7808.85 / 7841.80 / 7855.95 / 7862.45 / 7925.15 /7960.50 / 7964.80 /7968.25 / 7972.35 / 8030.90 / 8141.90 / 8160.90 / 8180.20.

   (Figures in bold are important)

Nifty opened on a weak note at 7733.75 and made a low of 7723.85 and then moved up and made a high of 7819.20 for the day before closing the day at 7779.70.It is still not showing strength and yet to make a short bottom, furthermore it is also way below its short term moving averages lower band and the range for DMA is between 7943—7844(it changes every day) for 20-10-14. However it has a strong support area in the region of 7720-7700 and as of now the short range for nifty is between 7700—7875  and break out on either side will decide which way it want to go, since it is moving in the range therefore at this point of time one can try long call near the lower end of the range i.e.7700 with a stop loss of close below 7690 and try short call near the upper end of the range i.e.7875 with a stop loss of close above 7895 , avoid fresh short call  if it moves above 7895 and stays. Since it is near the strong support area it may stage a pull back from here but in overall technical view it is still looking weak and expected to break the level of 7700 and test the range of 7600-7500 in coming days. TRADE CAREFULLY AND RESPONSIBLY.

REMARK:- Long term trend is still up but it is in intermediate downtrend and  range bound for now between 7700---7875 and break on either side will decide the further move for it. Since it is moving in a range trader can try both long and short call at appropriate level with an adequate stop loss. The overall bias is down as of now.  

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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