nifty monthly technical analysis and levels for January 2015
Nifty spot today closed at 8127 with loss of 3% or 251 points. On daily chart nifty is in downtrend while on weekly chart slipped below 6 month average and heading towards 52 weeks average level which is at 7900 and below it 7700 will be next support.
For month of January 2015, nifty spot outlook will remain bearish. Traders and short-term investors below 8290 keep bearish view on market. On downside, 7955 is first target as well as strong support. Below it, next support will be at 7650 for month of Jan.
On upside above 8290, nifty will face strong resistances at 8600 and 8900. Expect high volatility in this month with up and downside swing on news flows and global effects. As current short term trend is down and medium term trend is on correction side. Traders can stay short on nifty future or follow sell on rise view with strict closing basis stop loss above 8300 spot. Option trader’s use 8300 put option for buying and accumulation with same stop loss.
If nifty gives monthly closing below 7750 means medium to long term trend weakness and in that scenario expect deep downside up to 7000 to 6200. 7750 is most important level for investment view.