NIFTY---A TECHNICAL VIEW----21-4-2015

CNX NIFTY

CLOSED AT 8448.10 ON 20-4-2015.

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

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

As expected the fall in Nifty accelerated, it opened at 8616.80 and made a high of 8619.95 and thereafter steadily moved down and made a low of 8422.75 before closing the day near the low at 8448.10, it went down by more than 150 points today which was devastating. It has broken its all short and medium term moving  averages ,furthermore it has also broken the upper range  of the long term moving averages which is placed at 8505 for 21-4-2015 this is concerning, but it is above its last Fibonacci Retracements support point at 8405,therefore  it may arrest the on-going fall if it holds 8405—8384 range otherwise it is going to break the recent major bottom of 8269.15 it made on 27-3-2015,chances of breaking this bottom looks distinctly possible. Therefore looking at the technical parameters it seems that it is going to have good support in the range of 8130—8050 ,so the pull back may be expected around this range or if it moves above the upper range of the long term moving average ie. 8505.

In view of the above, I would advice to avoid long call now  and try it only in the range of 8130—8050 or above 8505 ,however aggressive trader can try it if it holds the range of 8405—8384. Please note that in totality my bias is on the downside now therefore I would still suggest to try sell call below 8445 & 8422 with a stop loss of above 8505 and 8460 respectively.

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, therefore it is suggested to avoid long call now.

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.