NIFTY---Technical View---23-2-2015

NIFTY CLOSED AT 8833.60 ON 20-2-2015

SUPPORT: -8808.90 / 8802.50 / 8795 / 8733 / 8671 / 8626.95 / 8593 / 8535.35 / 8470 / 8445.6 / 8364 / 8282.70 / 8272.80 / 8236 / 8180 / 8160 / 8147.95 / 8065.45 / 7961.35.

 RESISTANCE: - 8841 / 8873 / 8913.45 / 8940 / 8996.60 / 9040 / 9065 / 9338.

 (Figures in bold are important)

Nifty had a 120 points range during the week ended on 20-2-2015 but it had volatile and wild swings both ways before it closed the week at 8833.60 near the lower end of the weekly movement range. Technically it is looking ok now till it holds 8710 and finally 8626.95 level, break below this can trigger deep correction. Please note that the range for coming week starting from 23-2-2015 is between 8915---8790 and break on either side will decide the movement of  the week. I would therefore suggest to avoid long call below 8802 and try short call below 8790 or near 8900 with a stop loss of above 8820 & 8920 respectively for a target of 8720 and 8810, similarly long call can be tried above 8820 with a stop loss of below 8790. Looking at the overall picture my bias is on the downside as of now, therefore one should be very cautious in the long trades. Kindly  note that volatility will remain till the Union Budget so aggressive trader can take advantage of both side trade keeping the aforesaid range in mind.

Going up it will face resistance at 8873 / 8915 / 8940 & 8996.60 and moving down it will have support at 8780 / 8710 & 8626.95. 

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. Looking in totality my bias is on the downside as of now, therefore I would suggest to  reduce long exposure to a considerable extent before the union budget to combat the expected extreme volatility on either side after the budget.  

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.