CNX-NIFTY--A TECHNICAL VIEW--12-10-2015

CNX-NIFTY

Closed at 8189.70 on 9-10-15.

Support:- 8091.80/8065/8055/ 7997/7960/7940/ 7840/7759/ 7723.

Resistance:-8195.65/8232.20/8269/8272.80/8282.70/8315.40/8321.75/8337.95/8359.75/     8489.55/8504.95/8530.60/8561.35/8621.55.

After yesterday’s key reversal , today’s move was totally unexpected, however it did crossed the critical point of 8195.65 intra -day and  also filled the  gap in the range of 8225 it left on 24-8-15 but failed to close above 8195.65 mark ,as of now it is technically looking ok. It is well above its critical support point of 8132.62(it changes every day) and its recent bottom on the line chart at 8129.35.Please note that if it break these points and  close below it then it will be the first sign of crack in the on- going move and finally break and close below 8040 & 8000 will confirm that the up move may be over, similarly moving up it will face stiff resistance at 8195.65 and then in the range of 8232--8283 for the whole of next week, therefore it is suggested to try fresh long trade only if it moves above 8195.65 and sustain with a stop loss of below 8090. It is also suggested that if it consistently starts trading below 8129 then avoid adding on fresh long position because then you may get a chance to buy at the next critical point range of 8040—8000 but avoid buying below 8000 for sure.  

TRADING STRATEGY FOR-12-10-15

1. For safe trader fresh long call should only be tried if it closes above 8195.65 and sustain for at least 2-3 days with a stop loss of below 8090.

2. Aggressive day trader can try long call if it sustains above 8195.65 for at least 1- hours with a stop loss of below 8090.

3. Long call can be tried near 8040-8000 but not below 8000 with a stop loss of below 7940. It could be a risky trade.

4. It would be safe to try short call if it sustains below 7940 with a stop loss of above 8000.

5. Short call can be tried if it sustain below and 8000 with a stop loss of above 8060.

6. Aggressive short call can be tried if it sustain below 8120 with a stop loss of above 8200 for a target of 8040 & 8000. It could be a risky trade but worth trying.

7. Aggressive day trader can try short call if it sustains below 8195.65 for at least 1- hours with a stop loss of above 8250. It could be a risky trade but worth trying.

Remark:-The long term trend is still down. The short and intermediate trend is looking up. Yesterday’s key reversal was completely negated today  but it is still below its important point of 8195.65, therefore it is  suggested for safe and positional traders to try long call only if it closes above 8195.65 and sustain it for at least 2-3 days but day trader can take trade position as suggested above.

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.