Nifty-Technical View---16-1-2015

NIFTY CLOSED AT 8494.15ON 15-1-2015

SUPPORT: - 8470 / 8445.70 / 8364.75 / 8326 /8282.70 / 8272.80 / 8180 / 8160 / 8147.95 / 8118 / 8075 / 8049 / 7961.35 / 7840 / 7808 / 7723.85 7664 & 7540.

 RESISTANCE: - 8535.35 / 8626.95 / 8680.53 / 9038.29.

(Figures in bold are important)

Nifty opened with a huge up gap of more than 98 points at 8424.50 and made a low of 8380.55 and thereafter steadily moved up and made a high of 8487.10 before closing the day at 8494.15. Since today’s move in the nifty was news led (Repo rate cut by RBI) therefore it has to be seen how it settles down in next 2-3 days before initiating any fresh trade, but the fact remains that It has closed way above its critical point of 8291 today and crossed the important points of 8375 & 8470 also, which shows firmness and indicative of smooth and uninterrupted up move ahead and also suggest that now it is a buy on dip market with a stop loss of close below 8270. But I would still suggest to wait and watch to see how today’s news led euphoric moves pans out in next 2-3- days, before initiating any fresh long call. However aggressive trader can go ahead with long call on dip with suggested stop loss.

It is important to mention here that the gap it left today still exist and if it makes an attempt to fill the gap in next 3-4 days then it can come down to 8326 level.

Going up it will face resistance at 8536 / 8627 / 8681 & 9039  and very stiff resistance in the range of 8588—8681 and moving down it will have support at 8364.75 / 8326 / 8282 & 8270. 

Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARK:-  :- Long term up trend is still intact. Since nifty has decisively closed above the critical point of 8291 and important points of 8375 & 8470, therefore it suggest to go long on every dip with a stop loss of close below 8270. But I would suggest that since it was a news led move therefore give it at least 2-3 days breather before initiating any trade.

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.