NIFTY--( A TECHNICAL VIEW ) 8-4-2015

CNX NIFTY

CLOSED AT 8660.30 ON 7-4-2015

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

RESISTANCE: - 8669.45 / 8788.70/ 8849.75.

Nifty opened with a small up gap today at 8684.45 and made a high of 8693.60 for the day and then made a low of 8586.85,it did break the critical point of 8626.95 intra-day but managed to close reasonably above this mark but closed flat at 8660.30 just .40 above the previous day’s close. It exhibited huge volatility today but as it is above its critical mark of 8626.95 and also above its short term moving averages, therefore aggressive  trader can try long call above 8626.95 with a stop loss of below 8580 and stop loss for the positional trader would be below 8519.Since it giving whip saw over its critical point therefore it is suggested to avoid adding fresh long calls if it moves below 8626.92. Furthermore in view of the today’s volatility it is advised to handle trade with extreme caution. It still seems to be a pull- back rally and may get exhausted around 8695 or 8795 ,however to prove it otherwise it has to go beyond 8913.45 & 8996.60 mark.

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. Aggressive trader can try long call as suggested above but avoid fresh long call if it starts trading below 8626.95. Since it breached its critical mark intra- day today,I would prefer to wait  for 2 more days to see whether it still closes above its critical mark or not before initiating at least long trade.

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.