CNX-NIFTY- A TECHNICAL VIEW---4-8-2015

                                                                                                            4th, August, 2015

 CNX NIFTY           

 CLOSED AT 8543.05 ON 3-8-15.

Nifty opened on a weak note at 8510.65 and made a low of 8508.10 and then a high of 8563.95 for the day and closed at 8543.05. It was cautious and moved in a short range of between 8560—8530 the whole day ahead of RBI’S credit policy.

Technically it is looking o.k now but it is suggested to keep the long commitments lighter as today’s move was not that encouraging. Please get alerted in long trade if it consistently starts trading below 8530 and avoid fresh long call below 8510 and below 8490 for sure. The stop loss for the long trade would be below 8450. I once again reiterate that it will give sustained up move only if it crosses 8626.95 mark and sustain.

 It is also visible on the chart that Nifty is in the process of making Head & Shoulder pattern and to accomplish this pattern it should not cross 8561.35 mark decisively and then start moving down  and break the level of 8315(Neckline) to achieve the Head & Shoulder target of 7980-40. Please note if it either crosses 8561.35 mark decisively or does not break 8315 level then it will be a failed pattern, so watch out for 8561.35 level. Caution is advised for long trader.  

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;-  In totality my bias is slightly on the downside therefore one should be very cautious and careful in the long trade ,because this on- going up may end abruptly.

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 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.