NIFTY---( A TECHNICAL VIEW )------FOR THE WEEK STARTING FROM-20-4-2015

CNX NIFTY

CLOSED AT 8606 ON 17-4-2015.

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

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

Nifty opened on a flat to negative note at 8698.05 and made a high of 8699.85 and thereafter moved in a negative territory throughout the day and made a low of 8596.70 before closing the day near the low at 8606. As expected it has broken its critical level of 8626.95 and closed below it, which is a  bad sign, furthermore it has also broken all its short term moving averages and some medium term averages too ,therefore it indicate  that the on- going fall may accelerate from here  and going down it will have the potential strong support area is in the range of 8130----8470. However to negate this nifty has to move sharply beyond 8720 immediately, possibility of which looks remotest at this point of time.

 I would once again like to mention here that it has Fibonacci Retracements support points at 8708 / 8624 / 8556 / 8489 / 8405 two of which it has already violated however it could bounce back from any of the remaining points, therefore one should be vigilant around these point but please note that if it starts trading below 8405 then it  can  break the recent bottom of 8269.15. Furthermore its long term moving average range is between 8499---8129 now (it changes every day with price movement) and break below the upper band of the average ie-8499 will threaten the long term uptrend and consistently trading below 8129 will put the existence of uptrend in real danger, therefore if uptrend has to remain intact it cannot afford to stay even below the upper range of the average for a longer time period even if it breaks it.

In view of the above, I would suggest to try sell call now below 8626.95 and below 8596 for sure with a stop loss of above 8670. Long call can be tried either near 8130 with a stop loss of below 8050 or above 8283 with a stop loss of below 8220.  

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 since down correction is on I would advice to avoid long call now instead  try sell call as suggested above and long call can only be tried at points mentioned 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.