CNX-NIFTY-A TECHNICAL VIEW-14-10-2015

CNX-NIFTY

Closed at 8131.70 on 13-10-15.

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.

It opened on a negative note at 8121.95 and made a high of 8150.25 and then slipped and made a low of 8088.60 but in last half hour trade it staged good recovery and closed the day at 8131.70. It closed just below its most critical support level of 8132.14(it changes every day) after 5 days, but managed to hold the recent bottom of 8129.35 on the line chart. Since it has closed below its critical point of 8132.14, therefore avoid long call here and try if it goes near the next important support range of 8040—8000 with a stop loss of below 7940 or if it closes above 8132.14(it changes every day) and sustain, please note that it will pick up momentum only if it closes above 8195.65 and sustain, so it would be safe to try long call if it closes above 8195.65 only. Although as long as it holds 8040-8000-7940 range it cannot be said convincingly that the on-going rally is over but some of the technical parameters indicate that the on-going rally may be over or near the exhaustion point if it does not cross 8195.65 mark in next 3-4 days time. Therefore traders should be extra cautious in the long trade at least below 8195.65 mark. It is suggested to avoid long call now.

TRADING STRATEGY FOR-14-10-15

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

3. Aggressive short call can be tried if it sustain below 8129 with a stop loss of above 8200 for a target of 8040 & 8000. It could be a risky trade but worth trying.

4. Aggressive day trader can try short call near 8195.65 and near 8230 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. The weakness has grown in last two trading sessions and if it fails to cross 8195.65 in next 2-3 days time then it may go in for reasonable to deep correction. Therefore it is suggested to try long call either near the next important support range of 8040-8000 or if it closes above 8195.65 and sustain. Short can be tried 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.