Nifty Technical View---18-12-14

NIFTY CLOSED AT 8029.80. ON 17-12-14

SUPPORT: - 7974.55 / 7961.35 / 7949 / 7936 / 7856 / 7819 / 7723.85 / 7540 / 7422.15.

 RESISTANCE:- 8068.83 / 8160.90 / 8180 / 8216 / 8290 / 8280 / 8272.40 / 8355.65 / 8414 / 8454.50 / 8504.65 / 8535.35 / 8627.

(Figures in bold are important)

Nifty opened on a negative note at 8041.20 and made a low of  7961.35 and then moved up again and made a high for the day at 8082 before closing the day down from the previous day at 8029.80.It came near the last support range upper band of 7950 or almost retraced the 75% of the total up move from 7723 and then moved up and closed reasonably above the low of the day,this move indicate that a very short bottom may be in place and a pull back is in sight in a day or two before this short bottom is taken out again, therefore in an expected pull back these are the important points 8119 / 8216 / 8295 / 8374 from where pull back rally may end and down-slide starts again ,I expect that  the range of 8180---8295 is tough to cross in this pull back up-move. I still suggest to avoid long call till clarity on firm bottom formation emerges, instead short call can be tried on the rise at appropriate level and with a proper stop loss.

REMARK:-  :- Long term trend is intact up till now.It is expected to give pull back up –move now  but I would suggest trader to avoid long call completely till it gives indication of solid bottom formation, instead try short call on the rise at appropriate level with adequate stop loss.

 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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