Nifty-Technical View For-7-1-2015

NIFTY CLOSED AT 8127.35 ON 6-1-2015

SUPPORT: - 8118 / 8049 / 7961.35 / 7840 / 7808 / 7723.85 7664 & 7540.

 RESISTANCE:- 8147.95 / 8160 / 8180 / 8272.80 / 8282.70 / 8364.75 / 8470 / 8535.35 / 8626.95 ..

(Figures in bold are important)

Nifty opened with a gap down at 8325.30 and made a high of 8327.85 and thereafter it relentlessly went down and made a low of 8111.35 before closing the day near the low at 8127.35, down by more than 250 points. Today’s fall was devastating and it has broken the on going momentum for sure, it has also broken its all short term moving averages decisively which is a bad sign, furthermore some technical parameter suggest that it may be heading for much lower level in coming days and will break the recent bottom of 7961.35 for sure , therefore long call should be  completely avoided till it moves above 8291 and stays or give ample indication of correction completion .I would therefore suggest to try short call on the rise with a stop loss of above 8291,one can try short call below 8111.35 also with a stop loss of 8135 for a target of 8049 & 7950 on 7-1-2015 and below 8214.70 with a stop loss of above 8230 for the entire remaining week ending on 9-1-15.

It is important to mention here that it is pretty close to it long term moving averages and the range for it is between 8020—7617(it changes every day),if it breaks even the upper band of the range i.e 8020 that will be the first sign of threat to the long term up trend  and if it moves below 7617 mark and stays then the up trend would be in real danger, So if the up trend has to continue then it cannot remain even below 8020 mark for a longer period therefore one should start building position in a staggered manner as soon as nifty falls within this range with a stop loss below 7400.

REMARK:-  :- Long term up trend is still intact. Today’s move has broken the on going momentum therefore long trade is completely ruled out till bottom formation sign emerges, instead short call should be tried  on the rise  or below 8111 on 7-1-15 and below 8214.70 for the entire remaining week with a proper stop loss as mentioned above. 

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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