CNX-NIFTY--A TECHNICAL VIEW--2-11-2015

CNX-NIFTY

Closed at  8065.80 on 30-10-15.

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

Resistance:-8088.60/8195.65/8269/8272.80/8282.70/8315.40/8321.75/8336.30/8337.95.

It has been falling for last five days and as expected it broke and closed below its last long term moving average support point of 8137 and recent important bottom of 8088.60, which is a bad sign and indicates that it may give good intensity fall in coming days/weeks. Since it is falling strait for last five days and it has cluster of support in the range of 8040---7930 it may stage a short pull back rally from this range before it encounters further fall, therefore it is advised to have a balanced trading approach here. It will trigger fresh fall once it breaks 7930 level and sustain and this is likely happen in coming days. Please note that long call should be avoided for the entire week starting from 2-11-2015 if it starts trading below 8044 and below 7930 for the entire month of November-2015 till it bounces back above this mark again and sustain. The bias is down now, so these points should be used for initiating short trades.

 

Down move is on therefore it is suggested to avoid long call now but those who wish to take advantage of an expected pull back rally( it may happen here or may happen later) may initiate long call keeping the above points and range in mind. It is important to mention here that the pull back rallies are treacherous in nature and can trap you unaware therefore long trade should be handled with extreme caution and care. Kindly note that it will show strength only if it closes above 8137(it changes every day) and then above 8195.65 and sustain for at least 3-4 days which seems difficult at this point of time. Therefore in overall view it is suggested to try short call on the rise near 8137 and then near 8195.65 with a stop loss of above 8220 or below 8044 with a stop loss of above 8100 on 2-11-2015.

  

Remark:-The long term trend is down and the short term trend is also threatened therefore it is suggested to avoid long call now .Short call 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.