Nifty-Technical View For-12-12-14

NIFTY CLOSED AT 8292.90ON 11-12-14

SUPPORT: - 8290 / 8280 / 8272.40 / 8180 / 8160.90 / 7985.65 / 7815.75 / 7723.85.

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

(Figures in bold are important)

Nifty opened today on a negative note at 8338.85 and made a high of 8348.30 and then went down and made a low of 8272.40 and then moved up again to the level of 8345 before closing the day near the low at 8292.90.It is showing gross weakness. As expected it broke the important level of 8290 & 8280 during the day today but it just managed to close shade above these level, now if it breaks these level again and stay then the on-going correction could be severe and painful and it may last couple of days  since It is also running below  its all short term moving averages therefore the undertone is weak for sure and the range for short term DMA is between 8414---8475(it changes every day)for 12-12-14,I would therefore suggest that one can try short call either near 8350 with a stop loss of 8370 or if it starts trading below 8280 with a stop loss of 8300.One should try long call only either if  it  moves above the upper  band of the average and stay or if it closes above 8355.65 with a stop loss of 8330, going up it will find good resistance at 8414 / 8455 level. The good medium term averages support exist between 8229--8160 range.

  

REMARK:-  :- Long term trend is still intact. Since it is in correction mode I would suggest trader to avoid fresh long call till it gives indication of correction completion.

 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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