NIFTY---A TECHNICAL VIEW----14-5-2015

CNX NIFTY

CLOSED AT 8235.45 ON 13-5-2015.

SUPPORT: - 8230 / 8191.50 / 8181.50 / 8180 / 8160 / 8147.95 / 8144.75 / 8140 /8089 / 8065.45/ 7997.15 / 7961.15 /7841 / 7723 / 7540.10.

RESISTANCE: - 8236.65 / 8269.15 / 8272.80 / 8282.70 /8355.65 / 8364.75 / 8445.60 / 8470.50 / 8504.95.

Nifty opened today with a sharp jump at 8181.55 and within 45 minutes of trade made a high of 8254.95 and thereafter in an hour’s time by 11-11.15 AM it went down sharply and hit a low of 8089.80 and then again made a U turn and finally closed near the high of the day at 8235.45. It exhibited huge volatility and wild swing today which is indicative of weakness in it, however its close near the high today may be because of possible short covering but this may end abruptly also or may last for another day or two if it does last then  this process may get exhausted at any of these points 8269----8282----8320----8356. Please note that if it moves above 8356 and sustain then this rally may extend up to 8410---8450----8510. I feel that on highly optimistic note this move may end between 8320---8352 or earlier. I would therefore suggest to try sell call 8300 plus for sure with a stop loss of above 8360 and if this move ends all of a sudden then other sell points are near 8283 and below 8180 & 8140 and below 8125 for sure, similarly those who want to try long call can try above 8237 with a stop loss of below 8180. Since it is clearly sell on the rise market therefore it is suggested to avoid long call and if initiated should be handled with extreme caution. I would prefer to  try sell call. 

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. Therefore it is advised to avoid long call.

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.