CNX-NIFTY--A TECHNICAL VIEW---8-9-2015

CNX-NIFTY

Closed at 7558.80 on 7-9-2015

Support:-7540/7526/7450--7422/7350/7250/7118.

Resistance:-7627/7655.05/7667.25/7685.95/7724/7780/7840/7940--7962.

It opened firm and on a positive note at 7685.85 and hit a high of 7705.05 for the day but could not hold on at upper level and slipped into red after some time and plunged sharply in the 2nd half of the day and made a low of 7545.90 and closed the day near the low.

The trend is down and it is opening new downside range every other day which shows tremendous weakness in it and indicate that moderate to severe fall ahead in coming days/weeks. However  as I always write that in between short rallies could happen from time to time but the steady trend is hugely down therefore don't get caught into these rallies and combat these rallies smartly with the help of support and resistance points. In fact I would suggest to avoid taking advantage of these rallies, therefore long trades are ruled out till clarity on firm bottom formation emerges.

Since it is near an important support range of 7540--7526 and today it has respected this range therefore if it hold this range tomorrow then it may give a short up rally from here, therefore those who want to try long call can try around this range with a stop loss of below 7520 but moving up it will face huge resistance in the range of 7627--7655.05--7667.25--7685.85/7724,therefore even if it gives an up rally it seems difficult to cross this range. One should be circumspect in long trade and avoid fresh long call below 7526 for sure.

I would suggest to try short call on the rise but below 7667 with a stop loss of above 7695 or below 7540 with a stop loss of above 7565.

Remark:-The trend is hugely bearish therefore it is suggested to try short call at appropriate points and it is better to avoid long call for 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.