Nifty-Technical View For-8-1-2015

NIFTY CLOSED AT 8102.10 ON 7-1-2015

SUPPORT: - 8075 / 8049 / 7961.35 / 7840 / 7808 / 7723.85 7664 & 7540.

 RESISTANCE:- 8118 / 8147.95 / 8160 / 8180 / 8272.80 / 8282.70 / 8364.75 / 8445.60 / 8470 / 8535.35 / 8626.95 ..

(Figures in bold are important)

Nifty opened on a negative note at 8118.65 and made a high for the day at 8151.20 and low of 8065.45 before closing the day at 8102.10. It showed no sign of recovery today and closed the day 25.25 points lower which speaks of how weak it is. Technical parameter indicates that down correction may deepen and it may give reasonable to significant fall in coming days, however in between short up rally cannot be ruled out. Please note that if it fails to hold the level of 8049 then it will break the recent bottom of 7961.35 it made on 17-12-2014 chances of which are looking great. I would therefore advice to avoid long call completely till it moves above 8291 and stays or give potential indication of correction completion. As of now it is sell on the rise market, so try short call on the rise with a proper stop loss or below 8065 with a stop loss of above 8095 on 8-1-15 and below 8214.70 with a stop loss of above 8230 for the entire remaining week. Going up it will face resistance at 8160 / 8180 &8220 and moving down it will have support at 8075 / 8049 & 7961. 

It is important to mention here that it is very close to its long term moving averages and the range for it is between 8024—7625(it changes every day),if it breaks even the upper band of the range i.e 8024 that will be the first sign of threat to the long term up trend  and if it moves below 7625 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 8024 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 7450.

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. It is in correction mode now, therefore long call is completely ruled out till it gives visible sign of correction completion. As of now it sell on the rise market, so try short call on the rise 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.

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