NIFTY---(A TECHNICAL VIEW )---11-4-2015

CNX NIFTY

CLOSED AT 8780.35 ON 10-4-2015

SUPPORT: - 8669 / 8626.95 / 8470/ 8445 / 8364 / 8282.70 / 8272.80 / 8269.15 / 8180 / 8160 / 8147.95 / 8065.45/7961.15.

 RESISTANCE: - 8788.70 / 8794.48 / 8849.75 / 8913.45 / 8996.60 / 9119.20.

Nifty after making bottom at 8269.15 on 27-3-2015 made a good up move  and in eight days session it went up strait by more than 500 points and closed the weekend at 8780.35 near the high of the week i.e  8787.40 .It has almost retraced 61.8%(8794.48) of the total fall from 9119.20 to 8269.15. It is above its all short and long term moving averages and also closed above its critical point of 8626.95 for consecutively 5 days, it is showing no sign of weakness as of now but please note that going up from here it will have very tough resistance in the range of 8825 – 8930 according to one technical parameter and piercing through this wall of resistance looks tough although nifty is in good momentum.

Kindly note that if it is a pull -back rally which it seems to be then it may end here or may be around 8850—70 level and to prove it otherwise it has to cross the above mentioned wall of resistance and go beyond 8996.60 level for resumption of the smooth up journey again, which seems slightly difficult as of now.  

In view of the above observation one should be circumspect in their trade position and specially long call should be handled with caution, although it is not showing any sign of weakness but considering that it has retraced around 61.8% and tough resistance range ahead I would prefer not to initiate long call now but wait for a dip to enter instead after watching the market for some time I would try sell call at appropriate point but below 8850 with a stop loss of above 8875.

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.

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.