CNX-NIFTY--A TECHNICAL VIEW-10-9-15

CNX-NIFTY

Closed at 7818.60 on 9-9-15.

Support:-7723.85/7708/7667.25/7539.50/7450--7422.

Resistance:-7840--7881/7940--7972/7997/8065/8092.

The up rally which started yesterday continued today also and gave no sign of exhaustion at any point of time during the day, looking at the strength of the move today it seems that this rally may continue for another few days and may get exhausted either in the range of 7840--7881 or 7940--7972,but if it moves above 7972 and sustain then this rally may extend further. Kindly note that it will show some strength if it moves above 8183(it changes every day) and sustain, chances of which are not looking that bright at this point if time.

Please note that the on- going up move is just strong nature d pull back rally only, so be alert and don't  get caught unaware in this rally, because sometimes these rallies exhaust without giving any warning signal. Therefore long trade should be handled with extreme caution and care.

Trading Strategy

1.Those who are still  holding long trade should get alerted below 7744 and exit trade below 7708. Since the stop loss is at much low level it is suggested to book part profit in the trade at current rate and on the rise too, because it will face huge resistance in the range of 7840--7881.

2.Those who want to initiate fresh long trade can try it on the dip also but not below 7764, the stop loss would be same as suggested above or can try it above 7881 with a stop loss of below 7840.

3.Can try sell call below 7744 with a stop loss of above 7805 and add on to position below 7708 with a stop loss of above 7744 or try sell call in the range of 7840-7881 with a stop loss of above 7900.

Remark:--The trend is still down and it is just a pullback rally which may fizzle out any time, therefore I caution long trader to be extra vigilant and careful in their trade. I would personally avoid long trade.

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.