CNX-NIFTY--A TECHNICAL VIEW--23-10-2015

CNX-NIFTY

Closed at 8251.70 on 21-10-15.

Support:-8195.65/8088.60/8065/8055/ 7997/7960/7940/ 7840/7759/ 7723.

Resistance:-8269/8272.80/8282.70/8315.40/8321.75/8337.95/8359.75/8489.55/8504.95/8530.60/8561.35/8626.95/8654.75.

Although it is still holding its most important level of 8195.65 for last three trading session but it has failed to close above the momentum picking up point of 8285 which is causing concern and showing some sign of fatigue also in this on-going rally  but there is no sign of price weakness as yet. Please note that it has been moving in a very short range for last three days, furthermore it made double top in last two days at 8294.40, since it is moving in a short range it could give either side movement in coming days for sure and looking at last two days price behavior it seems that it could head lower, therefore it would be safe to try fresh long call if it moves above 8294.40 and sustain. The important range for it now is 8294.40—8195.65---8130--- 8040---8000. Aggressive trader can try long call near the above levels also with an adequate stop loss.

It is important to mention here that break and close below 8195.65 and then 8130(it changes every day) will give first sign of crack and finally break and close below 8088 and 8000 will end the on-going move for sure.   

 

TRADING STRATEGY FOR-23-10-15

1. Long trade should only be tried if it moves above 8295 and sustain with a stop loss of close below 8217.

2. Aggressive day trader can try long call near 8195.65 or near 8130 but not below these levels with a stop loss of close below 8130 & 8040. It could be a risky trade.

3. Aggressive day trader can try short call if it consistently starts trading below 8295 and not above with a stop loss of above 8325. It could be a risky trade but worth trying.

Remark:-The short and intermediate trend is looking up. Since it has been moving in a short range for last three days and made double top at 8295, therefore long call should only be tried if it moves above 8295 and sustain because if it fails to cross the said mark in next 3-4 days time then it could head lower, chances of which  are 60:40 as of now. I once again reiterate to avoid long call below 8295.

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.