Nifty--Technical View--9-2-2015

NIFTY CLOSED AT 8661.05 ON 6-2-2015

SUPPORT: -8640 / 8626—8600 / 8535.35 / 8445.60 / 8350 / 8282.70 / 8272.80 / 8180 / 8160 / 8147.95 / 8065.45 / 7961.35.

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

(Figures in bold are important)

Nifty opened on a negative note at 8696.85 and made a high of 8726.20 for the day and then went down and made a low of 8645.55 before closing the week near the low at 8661.05. It is below some of its short term moving averages and one long term parameter also so technically it is looking slightly weak, furthermore   other important indices such as CNX-Bank Index & BSE Sensex have broken their respective critical support levels and closed reasonably below it , therefore it may also follow suite too and the critical support for it is at 8626.95. But since today was the 6^th straight day of fall, it may give a pull- back rally now if it manage to holds the level of 8626.95 otherwise it may take few more days but I would suggest do not try to take advantage of the pull back rally and try long call only if it moves above 8809 or 8841 and stays. The aggressive intra – day  trader can try long call now if it holds 8645 level with a stop loss of below 8600 similarly short call also be tried if it maintains below 8626.95 with a stop loss of above 8665.

Going up it will face resistance at 8753 / 8777 / 8809 & 8841 and moving down it will have support at 8626.95 / 8535 / 8445.60 & 8380.55. 

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.

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.