NIFTY---( A TECHNICAL VIEW )--- FOR--16-4-2015

CNX NIFTY

CLOSED AT 8750.20 ON 15-4-2015.

SUPPORT: - 8669 / 8626.95 / 8612 / 8470/ 8445 / 8364 / 8282.70 / 8272.80 / 8269.15 / 8180 / 8160 / 8147.95 / 8065.45/7961.15.

 RESISTANCE: - 8788.70 / 8794.48 / 8844.80 / 8849.75 / 8913.45 / 8996.60 / 9119.20.

Nifty opened on a positive note at 8844.75 and made a high of 8844.80 and thereafter was moving in a negative range of 20-30 points for almost the whole day but slumped down in last 50 minutes of trade by more than 100 points and made a low of 8722.40 before closing the day at 8750.20. It seems that as envisaged the pull back rally possibly has ended in the desired range of 8850-70, in fact it could not even cross 8850 mark (see my post dt-11-4-2015). I would therefore suggest to adopt sell on the rise strategy now but off course below 8850 with a stop loss of above 8870 or sell below 8722 with a stop loss of above 8760. Going down it can have good support at 8669 / 8626.95 / 8470 and Fibonacci Retracements support points are at 8708 / 8624 / 8556 / 8489 / 8405 , moving up it will have very tough resistance in the range of 8833 – 8939.   

I would like to mention here that if its critical point of 8626.95 is broken then fall will accelerate and it is distinctly possible. Furthermore its long term moving average upper point is placed at 8490 now and break below this mark will threaten the long term up trend which may please be kept in mind.

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. Since it seems that pull back rally is over, I would therefore advice to avoid long call and try sell call as suggested above.

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.