CNX--NIFTY--A TECHNICAL VIEW--30-10-2015

CNX-NIFTY

Closed at  8111.75 on 29-10-15.

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

Resistance:-8195.65/8269/8272.80/8282.70/8315.40/8321.75/8337.95/8359.75/8489.55/8504.95/8530.60/8561.35/8626.95/8654.75.

As anticipated it closed below its last long term moving average support point of 8137.71(it changes every day) today but managed to hold its recent major bottom of 8088.20, please note that it has multiple top and bottom in the range of 8091—8055 so it is a very strong support area, furthermore going down neckline range of 8020—7980 and bottom of 7960 & 7940 will also lend good support, so the final breakdown will happen below 7940. The overall technical parameters suggest weakness and indicates that moderate to sharp fall may happen in coming days provided it sustains below its last long term moving average support point of 8137.71(it changes every day) for next 3-4 days, chances of which looks reasonably fair as of now. Therefore long call should be avoided now but if initiated should be handled with extreme caution and care.

 It gave first sign of weakness on 26-10-2015(see my post for 27-10-2015) and since then it is going down every day, therefore for safe trader it is still suggested to avoid long trade till it shows visible sign of good strength or try near its last support range of 7960—40. Since it is near its good support range of 8091—8055 now, it may stage a short bounce back rally from here, so aggressive trader can try long call above 8088 only with a stop loss of below 8020 but moving up it will face huge hurdle at every step which may please be noted. It could be a risky trade. Therefore it is suggested to try short call  below 8088 with a stop loss of above 8160 on 30-10-2015. It would be worth trying. 

 

Remark:-The long term trend is down but the short and intermediate trend is  up. In view of last three days weak session it is suggested to avoid long call completely till it gives visible sign of some kind of bottom formation, 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.