Nifty-Technical View--2-2-2015

NIFTY CLOSED AT 8808.90 ON 30-1-2015

SUPPORT: -8776—750 / 8626—8600 / 8535.35 / 8445.60 / 8350 / 8280--200 / 8180 / 8160 / 8147.95 / 8065.45 / 7961.35.

 RESISTANCE: - 8996.60 / 9039 / 9061 / 9704.

(Figures in bold are important)

Nifty opened with gap up in the uncharted zone at 8996.60 and the same was the new all time high also but it could not sustain at upper level even for 10 minutes and slipped in the negative territory and thereafter consistently moved down and made a low of 8775.10 and finally closed the week at 8808.90. It was a terrible down day today and as expected the desired correction has set in and that too within the anticipated range (see my post dt-27-1-2015) and nifty tanked by more than 220 points from  intra-day high and finally closed 143.44 points lower then the previous day. This correction may last for few days and these are the possible points from where it can bounce back 8626=8600 / 8530—8350 / 8280—8200 and resumes the up move again.

Please note that 8626.95 & 8270 are the benchmark points for the entire year of 2015, so get alerted in long trade below 8626.95 and avoid long trade for sure below 8270 till it bounce back above 8290 and sustain.

Technically it has tested the short term moving averages today and broken few of them too and it is also near certain long term parameter the range for which is between 8752---8669(it changes every day) for 2-2-2015, therefore it is suggested to avoid long call below 8752 and below 8669 for sure instead try short call below 8775 with a stop loss of above 8820 for a target of 8650 & 8600 Overall it is advised to avoid long call for at least 2-3 days or till visible indication of correction completion emerges. However those who want to take long call should only try it above 8840 with a stop loss of below 8800.

Going up it will face resistance at 8960 / 9039 & 9061 and moving down it will have support at 8625 / 8535 / 8445.60 & 8380.55. 

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 today’s move clearly indicated that correction has set in therefore long trade is ruled out for now till it gives ample 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.

Contact me for strategic guidance to enter and exit the trade.