Nifty-Technical View---29-12-14

NIFTY CLOSED AT 8200.70 ON 26-12-14

SUPPORT: -  8180 / 8160.90 / 8147 / 8115 / 8056 / 7961.35 / 7949 / 7936 / 7856 / 7819 / 7723.85 / 7540 / 7422.15.

 RESISTANCE:- 8216 / 8270 / 8290.25 / 8364.75 / 8373 / / 8468 / 8504.65 / 8535.35 / 8627.

(Figures in bold are important)

Nifty opened on a positive note at 8204.80 and made a high of 8234.55 and then moved down and made a low of 8147.95 before closing the day and weekend at 8200.70.After two strong down day it took a breather today and closed little higher at 8200.70 but closing higher does not show the required strength in it. It can regain the up momentum only, if it moves above 8375 & 8468 and stay, chances of which are looking bleak at this point of time,looking at other technical parameter also it seems that nifty may seek lower levels in coming days. Furthermore if it fails to hold the level of 8115 & 8051 then the recent bottom of 7961.35 it made on 17-12-14 can be decisively broken.  I would therefore suggest to wait and watch for initiating long trade at least till clarity on short bottom formation emerges. I would also advice to  try long call only if it moves above 8375 or at least above 8341(it changes every day) which is the upper band of the short term moving averages and stays otherwise try short call on the rise at appropriate level with an adequate stop loss or if it trades below 8160 with a stop loss of 8210, aggressive and intra-day trader can try long call above 8216 with a stop loss of below 8160 on 29-12-14 after watching at least half an hour trade. Please avoid long call below 8160 & 8147 for sure for the entire week starting from 29-12-14.Going down it can have support at 8160 / 8115 / 8051 & 7949,moving up it will have resistance at 8225 / 8270 / 8295 & 8365.   

REMARK:-  :- Long term up trend is intact but since nifty is in correction mode ,therefore it is suggested to avoid long call for now and below 8160 & 8147 for sure for the entire week starting from 29-12-14. Short can be tried on the rise or 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.