Nifty-Technical View---22-12-14

NIFTY CLOSED AT 8225.20 ON 19-12-14

SUPPORT: - 8215 / 8208 / 8174 / 8180 / 8160.90 / 7961.35 / 7949 / 7936 / 7856 / 7819 / 7723.85 / 7540 / 7422.15.

 RESISTANCE:-  8263.45 / 8290.25 / 8355.65 / 8414 / 8454.50 / 8504.65 / 8535.35 / 8627.

(Figures in bold are important)

Nifty opened with a up gap today at 8230.45 and made a low of 8208.60 but did not fill the gap it created and it still exist and if it makes an attempt to fill the gap then it can come down to 8174 level, chances of which looks reasonably good in at least next 1-2 trading session, so be watchful, it made a high for the day at 8263.45 before closing the day and weekend at 8225.20. As of now it still seems that it is a pull back rally and may fizzle out in another 1-2 days only but if it moves above 8375 & 8461 and stays then it may resume up journey again. Those who have taken long position to take advantage of the pull back rally can hold the position with a stop loss of close below 8160.

TECHNICAL VIEW

Now it is running within its short term moving averages range and the range for it is between 8381-----8185(it changes every day) for 22-12-14, therefore, I would personally  try long call only if it moves above the upper band of the moving averages range i.e 8381 and stay but aggressive trader can try long call above 8185  with a stop loss of close below 8160 for a target of 8265—8290 on 22-12-14.

REMARK:-  :- Long term up trend is intact ,As expected pull back rally 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. Intra- day trader can try long call above 8185 with a stop loss of below 8160.

 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