NFTY---A TECHNICAL VIEW FOR--23-4-2015

CNX NIFTY

CLOSED AT 8429.70 ON 22-4-2015.

SUPPORT: - 8364 / 8282.70 / 8272.80 / 8269.15 / 8180 / 8160 / 8147.95 / 8065.45/7961.15.

RESISTANCE: -8445 / 8470 / 8612 / 8626.95 / 8669 / 8788.70 / 8794.48 / 8844.80 / 8849.75 / 8913.45 / 8996.60 / 9119.20.

Nifty opened on a positive note at 8400.40 and immediately made a high of around 8424 and then went down and made a low of 8284.70 and thereafter moved up sharply and made a new high of 8449.95 for the day before closing at 8429.70. It was expected that it will break  the critical point of 8282.70 & 8272.80 and recent bottom of 8269.15 ,it  came near these points today but   did not break any of these points  instead it bounced back sharply from here and closed reasonably higher this move indicate that a bottom is in place at 8284.70 for now and it may give an up rally from here before making an attempt again to break the range of critical point and bottoms placed between 8284.70---8269.15, breaking of this range looks distinctly possible in coming days. The bias is still down but if today’s momentum continues then going up it will find tough resistance from some of its long term moving averages which are placed at 8458 & 8510 for 23-4-2015 and from Fibonacci Retracements target points which are at 8417 / 8499 / 8565 / 8631 / 8713 & 8732.78. The expected pull back rally may exhaust around any of these points but if it crosses 8732 mark and sustain then it could cross the recent top of 8844.80 it made on 15-4-2015. The range of 8507---8631 seems tough to cross.  

Today’s sharp up-move may be attributed to short covering, because technical parameters are still not showing any sign of improvement and it is still below its short, medium and some of the long term moving averages, so today’s up move may get over abruptly also in a day or two if it does not move above 8510 and sustain. Therefore aggressive trader who wants to take advantage of an expected pull back rally can try long call above 8409 or near 8380 with a stop loss of below 8350. I would  try long call only if it moves above 8510 and sustain ,now  I would prefer to try sell call below 8377 with a stop loss of above 8450 or near 8510 with a stop loss of above 8570. Sell below 8377 would be a safer option.

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 still intact but threatened, today’s move indicate that a bottom is in place for now at 8284.70 and a pull -back rally may happen. Traders can try both long and short call as suggested above off course depending upon the price movement .

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.