Nifty-Technical View For-12-11-14

NIFTY CLOSED AT 8362.65ON 11-11-14

SUPPORT: - 8330.75 / 8322 / 8290 / 8180 / 8160 / 8085.

 RESISTANCE:- 8383.05 / 8408 / 8430 / 8475 / 8550 / 8600 / 8650.

(Figures in bold are important)

Nifty opened on a positive note at 8354.10 and made a high of 8378.70 and low of 8321.85 for the day before closing the day near the high at 8362.65. Technically it is ok now, but since it has started moving sideways in last few days which is indicative of a big move ahead on either side in coming days,so some caution is advised.

TECHNICAL OBSERVATION

1.It is moving  sideways for last 4-5 trading session making a flag pattern on the chart and the range for it is between 8383.05--- 8290.25 and breakout on either side will set the direction for coming days. 

2. At present it is moving in a channel and today it broke the trend-line intra-day but closed within the channel but just near the trend-line, the range for channel is between 8575—8400 (this reading moves up every day) for 12-11-14.and If it does not move above 8400 on 12-11-14 then it will be first sign of weakness and indicative of possible correction ahead.

3. One technical parameter suggest that going up it will face huge resistance in the region of 8380---8475 for 12-11-14 and since we are not far away from this range, therefore caution is advised. The strong support exist at 8160.

In view of the above correction looks imminent in coming days, therefore I suggest to book at least part profit on long trades now and keep booking profit on the rise as well and sit on the cash so that one can re-enter again after a reasonable correction because the up trend is still intact. Those who want to hold the long position should get alerted below 8320 and exit trade if it closes below 8290, Avoid fresh long trade below 8290 for sure.

REMARK:- Long term trend is  up ,but it seems that correction is around the corner therefore traders are advised to book part profit in long trades here and on the rise too and avoid fresh long trades below 8290 for sure. 

   

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

Contact me for strategic guidance to enter and exit the trade