Nifty-Technical Overview For-7-11-2014

NIFTY CLOSED AT 8338.30 ON 5-11-14

SUPPORT: - 8330.75 / 8322 / 8297 / 8180 / 8160 / 8085.

RESISTANCE:-  8348.15 / 8365.55 / 8408 / 8430 / 8475 / 8600 / 8650.

(Figures in bold are important)

Technically nifty seems to be on a strong footing and indicate that the on going up move may continue for few trading session, therefore I suggest to adopt buy on dip strategy but since it had a straight rise from 7723.85 to 8365.55 in 12 trading session and the 4 gaps it had left in the process is still there, therefore extreme caution is also required on long trade because if correction sets in it could be severe.

At present nifty is moving in a channel and the range for it is between 8430—8260(it will move up every day) for 7-11-14, break out on either side will decide whether the rally will continue or correction will set in, therefore traders are advised to book at least part profit on the long trade near the upper band of the range i.e 8430 and re- enter again near the lower band i.e.8260 with a stop loss of below 8240 till the breakout happens. I would suggest to avoid fresh long position if it consistently starts trading below 8310 but one can add on fresh long position if it maintains above 8350 with a stop loss of below 8310 for the entire month of November-2014.Going up it will face stiff resistance at 8430 / 8525 / 8650 & 8675 level and I expect that this on- going rally may exhaust around these levels and correction may set in ,since we are not far away from these levels therefore extreme caution is advised in long trade. 

REMARK:- Long term trend is  up ,therefore buy on dip is suggested at appropriate levels  and with an adequate stop loss. Trade with extreme caution. 

   

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.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market

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