CNX-NIFTY-A TECHNICAL VIEW---16-9-15

CNX-NIFTY

Closed at 7829.10 on 15-9-15.

Support:--7759/7723/7678.50/7667.25/7539.50/7450-422.

Resistance:-7840/ 7846.05/ 7864.85/7881/7940--7962/7997/8065.

 It opened flat to negative at 7867.35 and crossed the previous day’s high of 7879.95 by a whisker and made a high of 7880 but failed to keep the yesterday’s up momentum on and steadily went down and made a low of 7799.75 before closing the day at 7829.10. Today’s move was not encouraging and it broke the lower band of the range for the day at 7800 ( see my post for 15-9-15) but managed to close within the day’s range, for 16-9-15 the range is between 7788—7881 furthermore it is also above the lower band of the short term moving averages which is between 7750—7916 for 16-9-15, so there is still some hope for the long trader that market could recover from here tomorrow but this may go  other way also and it could slide as it a pull -back rally and these rallies can fizzle out anytime . Therefore for long trader it is suggested to get alerted below 7788 and exit position if it sustain below 7750, fresh long call can only be tried if it moves above 7881 and sustain. Short call can be tried near the range of 7864—7880 with a stop loss of above 7910 or below 7750 with a stop loss of above 7790. Looking at today’s movement the bias seems to be on the downside but one should respect the price movement and take action accordingly in their trades.  

 Remark:-The trend is down and I prefer not to go against the trend. The  on- going up move  is a pull- back rally and it may end anytime and one may get caught unaware  therefore , personally I would not like to take advantage of the  up move  instead I would look for opportunity to initiate sell 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.