nifty monthly trend analysis for December 2014
Nifty spot on last trading session closed at 8524 with loss. On daily chart, nifty price trend and momentum both are bullish but now momentum is looking like peaked out and correction is expected ahead.
For month of December, nifty spot major critical support pivot level will be 8490. any daily closing below means downward trend for nifty index and lower targets of 8380 and in serve condition 8175 also possible. Nevertheless, as nifty still above 8490, traders must keep long view for targets of 8700 and then in super bullish environment 8825 will be next target.
On daily chart, 8390 is 1-month average support while 8155 is 3-month average support zone. Daily chart indicators and oscillators are signaling topped out pattern so traders must stay cautious with strict stop loss in place.
Option traders for now can follow buy and accumulate strategy in 8500 call option. However, if nifty falls below 8490 then 8500 put option will be best pick for rest of month.