CNX-NIFTY--A Technical View--1-9-2015

CNX-NIFTY

Closed at 7971.30 on 31-8-2015

Nifty moved within the range of 7940--8092(see my update for 31-8-2015) today and after hitting a high of 8043.60 for the day, it closed near the lower band of the range which indicate that it is expected to break 7940 level in coming days, break below this mark can drag it down to 7840/7769/7723/7650/7540 levels. Moving up it can face resistance at 8002/8010/8065/8092/8195/8225. I reiterate that the trend is down hence it may seek lower levels in coming days, therefore one should be extremely cautious in the long trade.

Some Trading Strategy

1.Those who want to try Long call can try above 7975 with a stop loss of below 7940 ,can add on to position above 8010 with a stop loss of below 7990.

2.Avoid long call below 7970 and below 7940 for sure.

3.can try sell call below 7970 & below 7940 for sure with a stop loss of above 8015& above 7980 respectively.

Remark:- Trend is clearly down ,therefore it is suggested to avoid long call now but those who want to initiate long trade depending on the price movement should be extremely watchful in their trade. I would not like to go against the trend, hence would avoid long call completely now instead try short call at appropriate levels.

Please 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.

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.