CNX-NIFTY--A TECHNICAL VIEW---22-9-2015

CNX-NIFTY

Closed at 7977.10 on 21-9-15.

Support:--7961/7940/ 7907/ 7840/ 7761/ 7723 / 7678.50/7667.25/7539.50.

Resistance:-7997/ 8055/ 8065/ 8091.80/ 8195.

It opened gap down at 7911.50 but filled today’s, as well as yesterdays gap during the day and closed near the high of 7987.90 for the day and just 5 points below the yesterdays close. It broke the short term rising trend line intra-day but managed to close above it which indicates some strength in it and it looks O.K on the daily chart as of now. Please also note that it will only show good strength if it moves above 8160(it changes every day) and sustain.

The short term rising trend line support point is at 7990 for 22-9-2015, so if the on- going up move is to continue unabated then it has to trade above this mark tomorrow, if it does not then it may slip down and get into corrective mode but moving down it will be having huge support from its short term moving averages which is in the range of 7925—7820(it changes every day) for 22-9-15. It will show potential weakness only if it breaks 7820(it changes every day) mark and sustain. Therefore for those traders who are still carrying long trades should take decision on their existing position keeping the above point and range in mind. However for those who want to initiate fresh long call, it is suggested that either they can try it if it sustain above 7990 OR above 8055 with a stop loss of below 7940 & 8025 or around the range of 7910---7840 with a stop loss of below 7820.   

                                                                                                                          

Remark:- The trend is down but the on-going up move is still  going strong and showing no sign of budging down therefore short call should be avoided above 7820 on 22-9-15 but aggressive day trader can try sell call tomorrow if it consistently starts trading below 7900 with a stop loss of above 7940.  The fresh long call can be tried and existing long position should be handled as suggested above. The bias is on the upside as of now.

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.