Nifty-Technical View--28-10-14

NIFTY CLOSED AT 7991.70 ON 27-10-14

SUPPORT: - 7972.35 / 7964.80 / 7960.50 / 7925.15 / 7862.45 / 7855.95 /7841.80 /7808.85 / 7784 / 7700.05 / 7593 / 7540.10 / 7422.15.

 RESISTANCE:-  8031.75 /  8067 / 8141.90 / 8160.90 / 8180.20.

   (Figures in bold are important)

Nifty opened with  gap up at 8064.35 and made a high of 8064.40 but filled up today’s gap immediately and made a low of 7985.65 for the day before closing the day near the low at 7991.70.The pull back rally expected target was 8066.11 and it almost hit it today therefore it seems that on going up rally may be over, if not then for continuation of this up rally it has to cross 8070 mark and stay above it for 3-4 days. Furthermore the  gap it left on 20^th & 22^nd Oct-2014 is yet to be filled and if it makes an effort to fill the gap it can slide down to 7936.60 & 7819 level, although it closed near the low today but it is way above all its short term moving averages and not showing any potential sign of weakness as yet and it  has a strong support at 7960 therefore aggressive trader can still try long call now or on dip with a stop loss of close below 7940 or if it moves above 8032 and stay then with a stop loss of close below 8010 ,avoid fresh long call if it start trading below 8014 for the entire week. Since it has almost hit the expected pull back target, therefore I would prefer to take long call only if it moves above 8070 mark and stays for 3-4 days on the contrary I would try short call here on the rise with a stop loss of close above 8070 or below 8014 with a stop loss of above 8040.

REMARK:- Long term trend is still up but since it has almost hit the expected pull back target therefore I would suggest to take fresh long call only if it crosses 8070 mark and stays above it, on the contrary I would like try short call on the rise or below 8014 with a stop loss of above 8070 & 8040 respectively.   

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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