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

CNX-NIFTY

Closed at 7688.25 on 8-9-2015.

It opened firm today at 7587.70 and breached the important bottom of 7540 by a whisker for a while and made a low of 7539.50 for the day and thereafter it steadily moved up and hit a high of 7720.90 before closing the day at 7688.25.

 As expected it gave an up move today, it was a robust up rally and that was not expected but the pull back rallies are like this only and unpredictable in nature. Since it is within the very important range of 7724--7667--7626 therefore if it moves above 7724 tomorrow and sustain then this rally may last for another 2-3 days otherwise it may end abruptly also. If it moves above 7724 then the next important level to watch out on the upside are at 7780/7840/7940--62 where this rally may get exhausted. Please note that if it consistently starts trading below 7667 tomorrow and then break 7626 mark and sustain then that may be the end if this rally.

Trading Strategy

1.Those holding long positions are advised to get alerted below 7667 and exit trade if it starts trading below 7626,please avoid fresh long call below 7667. One can add on to long position if it moves above 7724 and sustain with a stop loss of below 7680.

2. Short call can be initiated if it consistently starts trading below 7667 with a stop loss of above 7690. One can add on to position below 7626 with a stop loss of above 7667 or if it does not cross 7724 mark in first two hours of trade then go short around 7700--7720 with a stop loss of 7745.

Support:-7685/7667/7655/7626/7540/7526.

Resistance:-7710/7720.90/7750/7815/7840/7880/7940-7962.

Remark:-The trend is down, it is just a pull -back rally so be alert in your long trade and don't get carried away because these -rally may fade away without giving due warning signal.

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.