Nifty-Technical Overview-11-12-14

NIFTY CLOSED AT 8355.65ON 10-12-14

SUPPORT: - 8290 / 8280 / 8180 / 8160.90 / 7985.65 / 7815.75 / 7723.85.

 RESISTANCE:-8414 / 8454.50 / 8504.65 / 8535.35 / 8627.

(Figures in bold are important)

I have been suggesting since 3^rd week of Nov-14 that we are not far away from the time being top followed by reasonable to significant correction in coming days, (see my earlier post) eventually nifty made top at 8626.95 on 4-12-2014 and correction set in and nifty touched a low of 8317 on 10-12-14 in just 4 trading days, I would like to mention here that nifty took 19 trading days from the bottom of 8290.25 it made on 7-11-2014 to make a top of 8626.95 on 4-12-2014 and came back near the bottom of 8290.25 in 4 trading days or say in less then 25% time period which indicate that the on going impulse move may be over and the top of 8626.95 may not be crossed for a reasonable time period and nifty may move sideways with mixed bias for sometime till it gives further direction, however the long term trend is still intact, now the broad range for it is between 8290----8627 and if it breaks 8290/80 then it may drag down the nifty to 8160 & 8068 level chances of which are looking reasonably good.Long term trend will only be threatened if it consistently starts trading below 7850.

Nifty opened today on a negative note at 8318.05 and made a low of 8317 and made a high of 8376.80 for the day before closing the day at 8355.65.After two days of severe fall it took a breather today and closed little higher but no doubt it is in correction mode ,furthermore It has broken its all short term moving averages also and the range for it is between 8426---8494(it changes every day)for 11-12-14,since it is below the averages therefore the very short range for it is between 8280---8426 for 11-12-14.I would therefore suggest to try short call on the rise with  proper stop loss or if it starts trading below 8330 with a stop loss of 8350 and try long call only if  it  moves above the upper  band of the average and stay or if it moves at least above lower band of the averages and stays, aggressive trader can try both short and long call using the short range of 8280—8426.  

  

REMARK:-  :- Long term trend is still intact. Since it is in correction mode I would suggest to avoid fresh long call now or at least keep long commitments light at this point of time and exit long trade if it closes below 8280.

 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