Nifty--Technical View--10-2-2015

NIFTY CLOSED AT 8526.35 ON 9-2-2015

SUPPORT: - 8445.60 / 8350 / 8282.70 / 8272.80 / 8205 / 8180 / 8160 / 8147.95 / 8065.45 / 7961.35.

 RESISTANCE: - 8535.35 / 8626—8600 / 8753 / 8777 / 8802.50 / 8808.90 / 8841 / 8996.60 / 9039 / 9061 / 9704.

(Figures in bold are important)

Nifty opened with a huge gap down at 8584.40 and made a high of 8605.55 and then made a low of 8516.35 before closing the day near the low at 8526.35, the gap it created today is still there. As expected it has broken the 1^st critical support level of 8626.95 effortlessly, it is exhibiting tremendous weakness but since today was the 7^th straight day of fall it may stage a pull- back anytime but  will it sustain or not cannot be said at this point of time, therefore it is suggested that do  not try to take advantage of the expected pull back and try long call only if it maintains above 8626.95 because below this the next critical support level is at 8272---8210 and if it break this range then it can go in for further deep correction .However the possible levels from where it can bounce back are 8421 & 8272--8210. Therefore as of now I would suggest to try short call on the rise but below 8626.95 with a stop loss of above 8650 or below 8516 with a stop loss of above 8530 for a target of 8445-21 on 10-2-2015.

Going up it will face resistance at 8627 / 8646 / 8753 / 8777 / 8809 & 8841 and moving down it will have support at 8445.60 / 8364.75 / 8272 / 8210. 

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 it is correcting now therefore it suggested to avoid long call till it gives visible indication of correction completion. Short call can be tried as suggested 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.