NIFTY-----A TECHNICAL VIEW FOR---24-4-2015.

CNX NIFTY

CLOSED AT 8398.30 ON 23-4-2015.

SUPPORT: - 8364 / 8284.70 / 8282.70 / 8272.80 / 8269.15 / 8180 / 8160 / 8147.95 / 8065.45/7961.15.

RESISTANCE: -8445 / 8470 / 8505 / 8612 / 8626.95 / 8669 / 8788.70 / 8794.48 / 8844.80 / 8849.75 / 8913.45 / 8996.60 / 9119.20.

  

Nifty opened with a up gap at 8478.20 and made a high of 8504.95 but could not sustain at the higher level and started moving down after 1.1/2 hours of trade and made a low of 8361.85 during the day before closing at 8398.30. As expected yesterdays up move was definitely due to the short coverings because it did not build up sizable gains on yesterday’s move today and in fact lost ground and closed in the negative territory, therefore it looks that the expected pull back rally may have fizzled out today, however if it is still on then going up it will find very tough resistance from some of its long term moving averages which are placed at 8412 / 8458 & 8510 for 24-4-2015 and from Fibonacci Retracements target points which are at 8417 / 8499 / 8565 / 8631 / 8713 & 8733, but crossing 8510---8630 range would be extremely tough for it now . Furthermore it has exhibited huge volatility and wild swings both ways today which gives a clear indication of that the distribution process is on and it is also indicative of that further fall is ahead, therefore it seems that in all probability it is going to break the range of critical points and bottoms placed between 8284.70---8269.15 in coming days and may also  seek much lower levels. Going down it will find good support in the region of 8138---8050 and then between 7960---7723--7540.

In view of the above it is suggested to avoid long call now and it can only be tried if it moves above 8510 and sustain or near its strong support range of 8138---8050 with a stop loss of below 7960. Please note that if it breaks 8360 mark and stay below it then it is likely to hit this range in 2-3 days time. Kindly note that today’s move possibly has put the expected up rally to an abrupt end, therefore I suggest to try sell call now but below 8430 or below 8360 for sure with a stop loss of above 8460 & 8415 respectively. Sell below 8360 would be a safer option.  One should try long call for sure if it holds 8138—8050 range with suggested stop loss for an up rally. The short and medium term is down.    

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 the expected up rally may have exhausted abruptly , therefore it is advised to avoid  long trade  now and  it can be tried only at suggested level as mentioned above instead short call can tried now at appropriate level with proper stop loss.

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.