CNX-NIFTY-A TECHNICAL VIEW--7-9-2015

CNX-NIFTY

Closed at 7655.05 on 4-9-2015.

As expected yesterday's pull back rally was abruptly fizzled out today and as anticipated it broke the recent bottom of 7667.25 it made on 25-8-15(see my Post for 2-9-15) and hit a low of 7626.85 and closed around 29 points above the low of the day which shows huge weakness in it and indicate further fall ahead and the fall can be moderate to huge.

Furthermore  you would recall that I have mentioned about the  Head & Shoulder pattern on the weekly chart(see my Post for 2-9-15) and it has decisively broken its neckline on the weekend basis ,which was in the range of 7940--7962 ,therefore it is expected that the pattern will come into play and if it does, then it can drag down the nifty to 6900--6780 level in the coming weeks, but if the pattern  negates then it will have to move above the neckline range of 7940-7962 in the coming week, chances of which are looking slim at this point of time.

Support:-7626.85/7540/7457--7422/7350/7295/7250/7118/7080.

Resistance:-7667.25/7724/7780/7840/7940-7972.

Trading Strategy

1.It is suggested to avoid long call but those who want to try can try it above 7667.25 only with a stop loss of below 7620.

2.Short call is suggested below 7667.25 and below 7626 for sure with a stop loss of above 7685 or on the rise at proper levels.

Remark:-Please note that,I have been repeatedly writing in my post  that the trend is down and it is clearly sell on the rise market ,therefore long call should be completely avoided by safe and positional trader and can only be tried it bottom formation sign are visible, however day trader can try both long and short call depending on the price movement of the day.

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.