Nifty-Technical View---22-1-2015

NIFTY CLOSED AT 8729.50 ON 21-1-2015

SUPPORT: - 8680 / 8626.95 / 8535.35 / 8445.60 / 8380.55 / 8364.75 / 8326 / 8282.70 / 8272.80 / 8180 / 8160 / 8147.95 /

 RESISTANCE: - 9039 / 9061 / 9704.

(Figures in bold are important)

Nifty opened with a up gap at 8719.65 but filled the gap immediately and made a low of 8689.60 and thereafter made a new all time high of 8741.85 before closing the day at 8729.50. Technically it is showing all the strength so buy on dip strategy to continue, but since it is vertically moving up, therefore its vulnerability for correction is also increasing and very high at this point of time. So the long trade should be handled with extreme vigil and caution and one should  get alerted in existing long trade and avoid fresh long position below 8625 and exit long trade below 8600. Please note that since it had a vertical rise it may encounter profit booking anytime but it may go in for moderate correction if it breaks 8680(it changes every day) level.

Going up it will face resistance at 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. I would suggest to adopt buy on dip strategy with caution and proper stop losses.

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.