CNX-NIFTY--A TECHNICAL VIEW---30-9-2015

CNX-NIFTY

Closed at 7843.30 on 29-9-15.

Support:-- 7840/7759/ 7723 / 7678.50/7667.25/7539.50/7422.

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

It opened with a huge down gap at 7725.70 and made a low of 7691.20 and even after RBI’S rate cut announcement it was moving in a range for some time and thereafter shot-up and made a high of 7926.55 but could not hold on at higher level and closed the day at 7843.30. The volatility it exhibited today was expected (see my post for 29-9-15) but it did not show the required strength to carry on with the up move, therefore watch its movement for at least next two days to get clear direction that which way it want to move, but most of the technical parameters suggest that the fresh down move may be in the offing in coming days. So watch out the price movement and act accordingly.

 It is still moving in its broad range of 7660—8060(see post of 28-9-15),therefore today’s move was nothing significant, it did violated the short term rising trend line intra day but held it and it would at 7790 for 30-9-2015, it managed to bounce back within the short term moving average range of 7890—7816(it changes every day)for 30-9-15, it is making lower top & bottom on the line chart and the recent bottom is at 7795.70 it made on 28-9-15 bad sign, although it did break the support range of 7723—7700 but bounced back from there, so it is a huge support range for it and final support exist at 7660 break below this mark will accelerate the fall. Looking at the above technical parameters following trading strategy is suggested for 30-9-2015.

TRADING STRATEGEY

1.Long call can be tried above 7870 or above  7895 with a stop loss of below 7840 & 7860 respectively. It would be better to try it above 7895.

2.Can try buy call near the range of 7816---7790 with a stop loss of below 7759. It could be a risky trade.

3. Since it has huge support in the range of 7723—7700 and then at 7660 it would be safe to try short call if it sustain below 7711 and add on position below 7660 with a stop loss of above 7770 & 7723 respectively.

4. Since the trend is down, so sell call can also be tried if it sustains below 7790 with a stop loss of above 7840 or on the rise but below 7940 with a stop loss of above 7980.

Remark:-The long term trend is still down.  As expected it had a volatile day today. It hangs in balance now, so watch its price movement for next two days for proper direction and then act accordingly. However day trader can initiate trade as suggested above. The bias is still down.                                                                                            

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.