Nifty-Technical View---19-12-14

NIFTY CLOSED AT 8159.30. ON 18-12-14

SUPPORT: - 8068.83 / 7974.55 / 7961.35 / 7949 / 7936 / 7856 / 7819 / 7723.85 / 7540 / 7422.15.

 RESISTANCE:-  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 with a huge up gap today at 8138.90 but almost filled the gap during the day and made a low of 8084.90 and then moved up and made a high of 8174.30 before closing the day near the high at 8159.30.As expected the pull back rally is on ,now it has to be seen how long this rally can last, if it is a pull back rally which I feel it is as of now then it is not expected to go beyond 8300-8325 mark and may fizzle out in another 2-3 trading session or earlier also but if it moves above this range and crosses 8375 & 8461 level and stay or if it moves above its short term moving averages and stay then  up-trend may resume, chances of which are looking slim at this point of time, therefore I feel that the bottom it made on 17-12-14 at 7961.35 is not for good  and may be taken out in coming days. I would personally prefer to wait and watch  for clarity  here for at least 2 days before initiating long trade at least, my bias is still sell on the rise at appropriate level with a proper stop loss.

TECHNICAL VIEW

It is still below its short term moving averages and the range of it is between 8395---8267---8193(it changes every day) for 19-12-14,therefore ,I would personally  try long call only if it moves above the upper band i.e 8395 or at least above the middle band i.e 8267 of the range and stay but aggressive trader can try long call above 8193  with a stop loss of below 8160 for a target of 8265—8290 on 19-12-14.

REMARK:-  :- Long term trend is intact ,As expected pull back up –move is on but I  suggest not to try long call for taking advantage of this relief rally, therefore avoid long call completely till it gives indication of bottom formation for good.

 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