NIFTY----A TECHNICAL VIEW----13-5-2015

CNX NIFTY

CLOSED AT 8126.95 ON 12-5-2015.

SUPPORT: - 8125 / 8065.45/ 7997.15 / 7961.15 /7841 / 7723 / 7540.10.

RESISTANCE: - 8144.75 / 8147.95 / 8160 / 8180 / 8181.50 / 8191.50 / 8231 / 8236.65 / 8269.15 / 8272.80 / 8282.70 /8355.65 / 8364.75 / 8445.60 / 8470.50 / 8504.95 /

Nifty opened flat at 8326.15 and the open was the high also ,then in just 15-20 minutes of opening  trade is slipped down by 100 points and thereafter it steadily moved down throughout the day and made a low of 8115.30 before closing near the low of the day at 8126.95. It lost 198.30 points today which shows gross weakness in it. The on –going up rally seems to have fizzled out as expected and in the desired range and time frame (see my last post dt-11-5-2015). Since today’s fall was huge so it may take a pause here for a day or two before the fresh slide begins, therefore the important range for now is 8115—8145---8192--8269 on the up side and 8065---7960 on the downside. Since the trend is down therefore it is suggested to try short call on the rise at appropriate levels  or below 8115 with a stop loss of above 8145.Please avoid fresh short call if it moves  above 8145 and sustain.It would be safe to try sell call below 8115 today.

Kindly note that it is tremendously weak on the technical chart and it is very likely to break the recent bottom of 7997.15 it made on 7-5-15 in coming days and may seek much un-believable lower levels in coming months. I, would therefore advice to avoid long call till clarity on solid bottom formation emerges, however day trader can try long call for in between pull back rally from time to time at proper levels but it should be handled  with extreme caution because it absolutely sell on the rise market as of now.

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.

REMARKS:- Long term up –trend is severely threatened . The on-going up-rally seems to have exhausted today, therefore it is suggested to avoid long call, short call can be tried as 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.