Sunday, 2 August 2015

CNX-NIFTY--A TECHNICAL VIEW---3-8-2015

                                                                                                            2nd, August, 2015

 CNX NIFTY           

 CLOSED AT 8532.85 ON 31-7-15.

Nifty had a tremendously volatile movement during the week ended on 31-7-2015. It made a low of 8321.25 and a high of 8548.95 for the week before closing the week near the high at 8532.85. Kindly note that huge volatility is not a good sign for a steady market, therefore trade position should be handled with extreme caution and care because technical parameter may switch side very fast.

Technically it is looking o.k now and suggest to go for long  trade , therefore those who are already having long position should hold with a stop loss of below 8450, one can still initiate long position but it would be safe to initiate long position if it maintains above 8533 and one can add on to position if it moves above 8550 and sustain with a stop loss of below 8505 for the added long position. Please avoid fresh long position below 8495. Similarly if it moves below 8450 and sustain then short call can be initiated with a stop loss of above 8505.

It would be important for nifty to cross 8561.35 mark in 2-3 days time to give some hope of regaining up momentum but it will regain the real strength and sustained up momentum only if it maintains above 8626.95 level. Going up it will face resistance at 8561.35 / 8626.95 / 8654.75 / 8670 & 8850 and moving down it will have good support at 8470 / 8321.75 / 8315.40 / 8269 & 8195.65.

REMARKS;- Technical parameters suggest to go long now but it seems that nifty is in a mid range now  and it will give clear up momentum signal only if  it crosses 8626.95 mark and sustain above it, therefore long position should be handled with extreme caution because volatility in the nifty could end this up move abruptly also.

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.
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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 pointsDO 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.





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Thank you for sharing your views.