NIFTY-(SEEMS TO HAVE TOPPED OUT FOR NOW)---7-3-2015

CNX- NIFTY

The movement of Nifty on 4-3-2015 was wild it opened with a huge gap up at 9109.15 and made a new all time high of 9119.20 and was trading in the range of 9050—9075 up till 2 pm in the afternoon and thereafter started moving down and sharply plunged down to make a low of 8893.95 before closing the day at 8922.65 which was below the previous day’s low, today it showed gross weakness and in technical parlance   it is called key reversal. It strongly indicate that either nifty has topped out for now and down correction may begin before it resume up-move again or it has topped out for good and uptrend is over. It seems that it has topped out for now   provided it does not cross the level of 8996.60 and stays and then off course the all time high mark of 9119.20. Going down the critical support levels for it are at 8626.95 / 8470 / 8282.70 & 8272.80. Its long term moving averages at present it placed in the range of 8365—7985( it changes with price movement ) on 6-3-2015 therefore the first threat to the long term uptrend will be below 8365 level and trading below 8000 consistently will confirm that the uptrend is over. I would therefore define the trading range of the nifty here under in the following manner:-

(1). 8626.95---8996.60 & 9119.20

(2).8626.95----8272.80

(3).8272.80-----7985

Looking at the overall picture, I would suggest  to avoid long call now and try it only if it moves above 8996.60 and stay or after a significant decline and near 8669--8626.95 range with a stop loss of below 8590 instead short call can be tried here on the rise but below 9000 with a stop loss of above 9040.

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. Use support and resistance levels for entry, exit and trailing stop losses.

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.