CNX-NIFTY-A Technical View--3-9-2015

CNX-NIFTY

Closed  at 7717 on 2-9-2015.

It opened firm and on a positive note today but could not hold at upper levels and went below 7700 mark during the day, but it held the bottom of 7667 it made on 25-8-15 and managed to close above 7700 at the end of the day but below the earlier major bottom of 7723.85 which is a very bad sign.

It is very badly placed on the technical chart but the only silver lining is that RSI on the line chart is still showing positive divergence on the daily chart and if it comes into play then it may give a short up rally before resuming the down move again. Going up it will face tough resistance at 7723.85/7840/7940--7962.Therefore in wake of the positive divergence it is suggested to avoid short call till it breaks 7667 mark and stay below it or try sell on the rise where you see sign of exhaustion of the expected rally, but those who want to take advantage of the expected pull back rally may try long call at current rate or near 7667 level with a stop loss of below 7650. Please note that avoid long call and try short call below 7660 for sure.

Support:-7708/7667/7540/7457--7422/7350/7250/7118

Resistance:-7723.85/7840/7940--7962/7997/8065/8092.

Remark:-Trend is down, therefore one should be extremely careful and cautious attempting long trade for an expected pull back rally because these rallies are inherently weak and may fizzle out abruptly.

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.