CNX-NIFTY--A TECHNICAL VIEW--23-9-2015

CNX-NIFTY

Closed at 7812 on 22-9-15.

Support:--7787/ / 7761/ 7723 / 7678.50/7667.25/7539.50/7422.

Resistance:-7840/7858/7907.95/7940—7962/7997/8021.60/8055/8065/ 8091.80.

It opened with up gap at 8014.80 and made a high of 8021.60 and thereafter it started giving whip saw around the short term rising trend line support point of 7990 for the day for quite some time and then maintained just below it for some time and in the late afternoon it plunged down sharply and made a low of 7787.75 before closing the day at 7812. It made a classic copy book trend reversal today, therefore it seems that the on- going pull back rally is over for sure. I clearly gave an indication of the recent rally top already in place at 8055 on 18-9-2015 in my post for 21-9-2015.  

 Since it broke its short term rising trend line decisively and also broke all its short term moving averages in one go today and closed below it, therefore there is not a fraction of doubt that the present up rally is technically over and hopefully fresh down journey may begin from here, so in all likelihood it is a sell on the rise market now, however in between short up move could happen but those should be utilized for selling till it gives visible sign of some kind of bottom formation.

It is important to mention here that it has broken all its short term moving averages and recent bottom of 7829.10 on the line chart whereas Bank Nifty is holding on to these parameters and Bank Nifty has huge bearing and influence on the Nifty’s movement, therefore aggressive short trade should be avoided till Bank Nifty fall in line with nifty.

 Since it has given perfect trend reversal today ,therefore it is suggested to avoid long call  tomorrow  for sure  instead try short call below 7812 and below 7787 for sure with a stop loss of above 7850 & 7812 respectively for a target of 7723/ 7678/ 7667/7539. Be alert around 7678—7650 range in your short position.

                                                                                                                  

  

Remark:-The trend is down and today it gave perfect trend reversal, so the on going up move seems to be over , therefore long trade  is ruled out for me till it gives visible sign of some kind of bottom formation. It is clearly sell on the rise market 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.