Nifty-Technical Overview---26-12-14

NIFTY CLOSED AT 8174.10 ON 24-12-14

SUPPORT: -  8160.90 / 8115 / 8056 / 7961.35 / 7949 / 7936 / 7856 / 7819 / 7723.85 / 7540 / 7422.15.

 RESISTANCE:-8180 / 8216 / 8225 / 8255 / 8263.45 / 8290.25 /  8355.65 / 8364.75 / 8414 / 8454.50 / 8504.65 / 8535.35 / 8627.

(Figures in bold are important)

Nifty opened on a flat to positive note at 8272.05 and made a high of 8286.40 and thereafter moved within a range before plunging down in the last hour of trade and made a low of 8155.25 and closed the day near the low at 8174.10. It had two strong down day in a row and in today’s  down move it has also filled the gap it left on 19^th Dec-14 .It seem that the on going pull back rally has fizzled  out  and it may seek  lower level in coming days but in between short up move cannot be ruled out .Please note that in this down move if it fails to hold the level of 8115 & 8051 then it will surely break the recent bottom of 7961.35 it made on 17-12-14,chances of which are looking reasonably bright at this point of time. Therefore I would suggest to avoid long call completely as of now  and below 8155 on 26-12-14 for sure instead short call can be tried on the rise at appropriate level and with a proper stop loss. Going up it will find resistance at 8225 / 8255 & 8295.

TECHNICAL VIEW

It has broken its short term moving averages range today which is a bad sign and the range for it is between 8347-----8199(it changes every day) for 26-12-14.

Some other technical parameters have also started showing sign of weakness and if it continues then it may witness further fall.

I would also like to mention here that the long term moving averages range is between 7967---7540(it changes every day) for now and if it  breaks the upper band of the range then it will be first sign of a threat to the long term up trend and breaking of the lower band of the range and staying there would be a great concern to the up-trend, therefore if the up trend has to stay then it cannot remain below even the upper band of the moving averages range for a longer period. So be watchful if it falls within  this range.

Since it is running below its short term moving averages and other technical parameters are also becoming weak therefore long call should be completely avoided till it bounces back above its short term moving average upper band and stay or it crosses the recent top of 8364.75 it made on 23-12-14,if it fails to do so fast then it may have reasonable to significant fall in coming days . Kindly note that long position should be tried and build up if it falls within the long term moving average range with a stop loss of below 7500.

REMARK:-  :- Long term up trend is intact but since nifty had two strong down day in a row ,so it is suggested to avoid long call for now till this on- going fall is arrested.

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