Nifty-Technical View For-10-11-14.

NIFTY CLOSED AT 8337 ON 7-11-14

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

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

(Figures in bold are important)

Nifty opened flat to negative at 8331.85 and made a high of 8360.35 but could not cross the previous day high of 8365.55 and made a low of 8290.25 during the day before closing at 8337.Technically it is still OK and suggest buy on dip but since it had a significant rise of around 650 points in 12 trading session therefore caution is advised on long trade because it may correct from here and if correction sets in it could be severe one. 

As you are already aware that nifty at present is moving in a channel and the range for it is between 8473---8300(it will move up every day) for 10-11-14,since it is near the lower range and may  break it and if it does then it will trigger  correction, therefore traders are advised to book at least part profit in long trade here and on the rise and  near the upper band of the range for sure i.e 8473 and re- enter again near the lower band i.e.8300 with a stop loss of below 8280 till the breakout happens. I would suggest to avoid fresh long position if it consistently starts trading below 8310 and re-enter only if it moves above 8350 and stays with a stop loss of below 8300 for the entire month of November-14.Please avoid fresh long trade below 8365.55 & 8290 on 10-11-14 for sure. Going up it will face stiff resistance at 8430 / 8525 / 8650 & 8675  level and I reiterate that this on- going rally may exhaust around these levels and correction may set ,since we are not far away from these levels therefore extreme caution is advised on long trades. 

REMARK:- Long term trend is  up ,therefore buy on dip is suggested at appropriate levels  and with an adequate stop loss but avoid fresh long trade below 8365.55 & 8290 on 10-11-14.Trade with extreme caution because correction looks imminent .

   

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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