Nifty--Technical View--11-2-2015

NIFTY CLOSED AT 8565.55 ON 10-2-2015

SUPPORT: - 8535.35 / 8445.60 / 8350 / 8282.70 / 8272.80 / 8205 / 8180 / 8160 / 8147.95 / 8065.45 / 7961.35.

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

(Figures in bold are important)

Nifty opened gap down at 8478.10 and made a low of 8470.50 and thereafter shot up and made a high of 8646.26 but could not sustain at the higher level and slipped down and came near the low of the day again and finally closed in the positive zone after 7 days of fall which was expected and in this process it has also filled the today’s gap as well as the gap it left yesterday. It exhibited extreme volatility today and this is expected to continue till the Union Budget. However today’s up move was just a pull back and this may last for 2-3 days at the maximum or may get over tomorrow also . Therefore it is suggested to try long call only if it moves above 8626.95 and maintains and note that it will regain momentum only above 8750 as of now. Short call can be tried on the rise but below 8626.95 with a stop loss of above 8650 or below 8526 with a stop loss of above 8670 for a target of 8445 & 8420. Please note that below 8626.95 the next critical support for nifty is at 8772—8220 range. The bias is on the down side as of now.

Going up it will face resistance at 8627 / 8646 / 8753 / 8777 / 8809 & 8841 and moving down it will have support at 8530 / 8445.60 / 8364.75 / 8272 / 8220. 

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. The aggressive trader can try both long and short call 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.