Nifty-Technical View--22-10-14

NIFTY CLOSED AT 7927.25ON 21-10-14

SUPPORT: - 7925.15 / 7896.95 / 7862.45 / 7855.95 /7841.80 /7808.85 / 7779.70 / 7700.05 / 7593 / 7540.10 / 7422.15.

 RESISTANCE:- 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 firm note at 7906.15 and made a high of 7936.60 and low of 7874.35 for the day before closing the day at 7927.75.It is moving up in a steady way  and showing some strength but still below its upper band of the short term DMA ,it seems that it will cross it in a day or two ,the range for the short term DMA is between 7954-7856 for 22-10-14.Please note that the gap still exist and  today was the 1^st day after it left the gap on 20-10-14,so one has to be careful in next 2-3 days of trading, if it breaks the level of 7856 then it can go down to 7819.20 to fill the gap. Since it is exhibiting firmness  therefore one can take long call now or on the dip with a stop loss of close below 7840,please avoid fresh long call below 7840 .I would personally take long call only if it moves above 7954 and stay.

REMARK:- Long term trend is still up , since it is showing some strength so one can try long call  now or on the dip with a stop loss of close below 7840.The short call can be tried if it starts trading below 7840 with a stop loss of 7870.

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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