Nifty-Technical View-1-10-14

NIFTY CLOSED AT 7964.90  ON 30-9-14

SUPPORT: - 7964.80 / 7958.90 / 7925.15 / 7855.95 / 7841.80 / 7808.85 / 7700.05.

 RESISTANCE:- 7968.25 / 7990.35 / 8039 / 8049.85 / 8057.30 /8082 /  8141.90 / 8160.90 / 8180.20 / 8210 / 8294 / 8330.

   (Figures in bold are important)

Nifty opened on a negative note at 7948.80 and then went on to make high for the day at 8030.90 and thereafter plunged down and made a low of 7923.85 before closing the day at 7964.80.It did not even cross the first resistance point of 8039 as mentioned in my post of 29-9-14 and went down sharply from 8030.90 level, today’s move clearly shows that the under tone of the nifty is quite weak ,furthermore it is still below all its short term moving averages ,therefore long trade is completely ruled out till it bounces back above it and stays for 3-4 days and the range for short term DMA is between 8055—7993 for 1-10-14, therefore it is still sell on the rise market as of now. I once again reiterate that I would think of going long only if it moves above 8180.20 and stays for 2-3-days.Kindly note that now if it breaks the level of 7840 it will get support at 7784 / 7700 / 7593 & 7540, and if it fails to hold the level of 7700 then it may test the bottom of 7540,chances of breaking the bottom of 7840 looks reasonably bright in coming days. Please also note that I would avoid long call completely now but contrarian and aggressive trader can try long call near the critical bottom at 7925.15 & 7841 with an adequate stop loss. ONE CAN TRY SELLING NIFTY ON 1-10-14 IF IT TRADES BELOW 7958.90 WITH A STOP LOSS 7985

REMARK:- Long term trend is still up, but since it below its all short term moving averages therefore long trade is completely ruled out till it bounces back above it again and stay for 3-4 days ,on the contrary one can try short call here on the rise with a stop loss of close above 8090. Avoid impulsive trade . 

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

Contact me for strategic guidance to enter and exit the trade