CNX-NIFTY-A TECHNICAL VIEW--16-10-2015

CNX-NIFTY

Closed at 8179.50 on 15-10-15.

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 made an attempt today to cross its critical resistance point of 8195.65, it went near to it but failed to cross it. Furthermore it has made a lower bottom on the line chart by breaking its recent bottom of 8129.35 yesterday but has not made a lower top yet, it could possibly make a lower top with today’s up move, therefore till it closes above its recent top of 8189.70 on the line chart and sustain long call should be avoided. Since its critical point of 8195.65 is pretty close to the top, so long call should be avoided till it closes above it and sustain. After closing two days below its most critical support point of 8131.76(it changes every day) it has bounced back above it today. The erratic movement in nifty is not giving proper signal that which way it wants to move. Please note that as long as it holds 8040-8000 range it would be ok for an up move and break and close below 8000 & then 7940 will confirm the end of this rally. Therefore long call can be tried if it moves above 8195.65 and sustain or near 8131.76 but not below it because if it breaks this point and sustain then you may get a chance to buy near its next critical support point range of 8040—8000, fresh long call should be avoided below 8000 for sure.    

 

TRADING STRATEGY FOR-16-10-15

1. For safe trader fresh long call should only be tried if it moves above 8195.65 and sustain for at least an hour with a stop loss of below 8100.

2. Long call can be tried near 8131.76 and then near 8040-8000 but not below 8000with a stop loss of below 7940. It would be safe to try near 8040-8000 range.

3. Short call can be tried below 7990 with a stop loss of above 8070 for a target of 7940&7880.

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. It gave an up move today but failed to close above its critical point of 8195.65 therefore fresh long call should only be tried if it closes above this mark and sustain or 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.