Nifty-Technical View For--19-1-2015

NIFTY CLOSED AT 8513.80ON 16-1-2015

SUPPORT: - 8445.60 / 8380.55 / 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 / 8681 / 9039.

(Figures in bold are important)

Nifty opened on a positive note at 8504.05 and made a high of 8530.75 and a low of 8452.25 before closing the week at 8513.80. It seems that today was the day of consolidation after yesterday’s euphoric rise and it closed with a gain of around 20 points. It is showing firmness and strength which is indicative of a good up move ahead.

The technical parameter also suggest to adopt buy on dip strategy and the authentic stop loss for positional trade should be close below 8270 but for day trade the stop loss should be below 8380 . Please note that it could encounter profit booking in the range of 8487--8681, so the long trade should be handled carefully and cautiously.

 Please do not forget that the up gap it left on 15-1-2015 still exist and chances of filling this gap is distinct at least in next 2-3 days and if it breaks the level of 8380 then it will attempt to fill the gap and in this process it can come down to 8326 level but if it fails to fill the gap in next 2-3 days time then it will be difficult to say in what time frame it will fill it. Therefore one can go for long trade on dips but with caution and get alerted below 8380.

Going up it will face resistance at 8590 / 8627 / 8681 & 9039 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. I would suggest to adopt buy on dip strategy with caution and suggested 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.