CNX-NIFTY--A TECHNICAL VIEW--29-9-2015

CNX-NIFTY

Closed  at 7795.70 on 28-9-15.

Support:-- 7759/ 7723 / 7678.50/7667.25/7539.50/7422.

Resistance:-7840/7890/7907.95/7940—7962/7997/8021.60/8055/8065/ 8091.80.

It opened on a positive note at 7892.80 and made a high of 7893.95 and then slipped down in the later part of the afternoon session and made a low of 7787.95 and closed near the low at 7795.70. Today’s move showed weakness and in this down move it has broken all its short term moving averages and the range for them is between 7824—7894(it changes every day) for 29-9-2015, furthermore it has made lower top & bottom on the line chart but yet to break the recent bottom of 7723 on the bar chart and  holding on the short term rising trend line which would be at 7775 for 29-9-2015. Since it has made lower top and bottom on the line chart, it is very likely that the bottom of 7723 on the bar chart will also be taken out for sure. Please note that moving down it will get good support in the range of 7723—7700 and then 7660 , once the 7660 mark is taken out then possibly the speed of the fall may accelerate, chances of which are looking pretty good. Since tomorrow it could be a hugely volatile day because of the RBI’S trade policy announcement, therefore traders should be extra careful in their trade positions particularly in long side trade because the trend is down.

Trading Strategy   

1. It is suggested to avoid long trade now but aggressive day trader can try long call  above 7908 or near 7723—7711 with a stop loss of below 7860 & 7690.

2.Short call can be initiated if it moves  below 7775 and sustain with a stop loss of above 7840 or on the rise but below 7908 with a stop loss of above 7940.

 Remark:-The long term trend is still down. But in view of RBI’S trade policy announcement, it would be safe to initiate fresh trade position after the RBI’S event is over. The bias is down, therefore it is suggested to avoid long call now, if initiated should be handled with extreme caution and care.                                                                                             

 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.