CNX-NIFTY--A Technical View---31-8-2015

CNX-NIFTY

It had a fairly wide range of movement during the week ended on 28-8-15. It hit a low of 7667.25 and a high of 8091.80 and closed the week at 8001.95 but technically it is still on a weak footing and it will gain some strength and stability if it moves above 8195 & 8230(this figure changes every day, I will be updating it)and sustain ,chances of which are looking weak at this point of time. The trend is down but short up rally from time to time can happen as it is happening now.

It seems that for safe trader the range of 7940---8092 is a no trade zone but aggressive trader can try both long and short call within this range.

Some Trading Strategy for Safe and Aggressive trader.

1.safe trader can try buy call near 7962 or above 8092 with a stop loss of below 7940 & 8060, can try sell call near 8070--90 or below 7940 with a stop loss of above 8110 & 7970.

2.Aggressive trader can try buy call above 8002 or near 7962 with a stop loss of below 7980 & 7940 or can try sell call below 7980 with a stop loss of above 8010.

Support:-7961/7940/7840/7769/7723/7667.

Resistance:-8065/8092/8195/8283/8316.

Remarks:-Since the trend is down therefore long trade should be handled with extreme caution. I would personally avoid buy call now and look forward for selling opportunity.

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.