CNX-NIFTY--TECHNICAL VIEW--11-9-2015

CNX-NIFTY

Closed at 7788.10 on 10-9-15.

Support:--7678.50/7667.25/7539.50

Resistance:-7846.05/7881/7940--7962/7997/8065.

It opened with a huge gap down at 7729.05 and went down further and made a low of 7678.50 for the day. It gave all the indication that the on- going pull back rally may be over, but in last 45 minutes of trade it staged a stupendous recovery and crossed the previous day's closing of 7818.60 by a whisker and hit 7819.85 mark before closing the day 30 points lower at 7788.10.

It exhibited huge volatility today and the move was surprising and gave some indication that the pull back rally may not be over yet and can continue for few days only if it moves above 7846.05 and sustain, if it does then this rally can extend further and may get exhausted in the range of 7940--7962, similarly if it moves below 7667 and sustain then this rally will fall flat. Therefore those who are carrying short position should get alerted above 7825 and avoid fresh short and exit position if it sustain above 7850 and for those who are holding long position now should get alerted below 7740 and avoid fresh long below 7723 and exit trade below 7700 but the authentic stop loss for long trade would be below 7667 which may please note.

Remark:- The trend is down but looking at today's volatility ,it is suggested to watch the market for sometime tomorrow before initiating any fresh trade and for existing trade take action as suggested above. I once again caution that pull back rallies in downtrend are very treacherous therefore trader should be very vigilant and careful specially in long trades.

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.