CNX-NIFTY-A TECHNICAL VIEW--27-10-2015

CNX-NIFTY

Closed at 8260.55 on 26-10-15.

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.

It did close just above its most critical point of 8285 on 23-10-2015 but could not sustain it and closed the day near the low at 8260.55. As I have mentioned in my last post that it is showing sign of fatigue and today’s weak move somewhat confirms it, therefore until and unless it closes above 8285 and sustain it for at least 2-3 days long call should be avoided. However the short range for the Nifty for the on-going week is between 8340—8215 and the broad range is between 8340—8115 so based on these range aggressive trader can take both side trading calls. Although it is not showing potential price weakness as yet but failed to show the desired strength also which is concerning and looking at today’s price behavior it is suggested to avoid long call below 8250 on 27-10-2015. Please note that if it consistently starts trading below 8215 then avoid long call for the entire week till it bounces back above it again. In view of the above observation it is suggested to avoid long call now but those who wish to take should be extra vigilant and careful in their trade because the bias seems to be on the downside now, therefore short call can be tried below 8250 and below 8195 with a stop loss of above 8295 and 8262.

It is important to mention here that break and close below 8195.65 and then 8137(it changes every day) will give first sign of crack and finally break and close below 8088 and 8000 will end the up move for good.   

 

Remark:-The short and intermediate trend is looking up. It is suggested to avoid long call till it closes above 8285 and sustain it for at least 2-3 days. Therefore for safe trader long call is ruled out for tomorrow instead 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.