Nifty View: 16th June, 2014 and ahead

The party at Dalal Street seems to have hit brakes. Crude Oil prices have shot up and it has hurt the ongoing bullish sentiments in the market. After briefly touching 7700 levels, Nifty has now fallen near 7540 levels.

Nifty Spot Chart
The above chart is of Nifty (Spot Levels) - Daily TF. Nifty is approaching an important support zone of 7470-7500. The support of the previous swing high which Nifty broke is at 7500, the 14EMA is at 7480 and the rising trendline support is also near the 7480 levels. If Nifty breaches these levels, expect it to head lower to 7395 levels where the 21EMA is the next support level. Expect Nifty to take support at the 7480-7500 support zone. The immediate resistance for the index is 7580. If Nifty manages to break above 7580, it can head higher for 7670 which is the next resistance. Above 7670, the index can retest 7700. We don't see the index breaking 7700 this week however. It will be interesting to watch how the index reacts to the trendline support and the 21EMA. If Nifty closes below 7390, expect it drift lower towards 7200 levels. In brief, important levels to watch:
Support: 7480-7500 / 7390.
Resistance: 7580 / 7670 / 7700
Expected Range: 7390-7700

Risky Trade: Sell 7400PE and 7700CE at 30 each, Total Cost: 60, SL: 90. Risk: 1500 PER LOT.

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