CNX-NIFTY--A TECHNICAL VIEW--7-10-2015

CNX-NIFTY

Closed at 8152.90 on 6-10-15.

Support:-- 8091.80/8065/8055/ /7997/7960/7940/ 7840/7759/ 7723

Resistance:-8195/8225/8269/8272.80/8282.70.

It opened with a huge up gap at 8180.45 and made a high of 8180.95 but could not sustain at higher level and thereafter gradually moved down and made a low of 8096.50 before closing the day reasonably good at 8152.90. After decisive up-side breakout from the neck line yesterday the follow up movement was good and moving up it had also crossed two major resistance point of 8132 & 8146(it changes every day) and if it crosses 8195 mark and sustain then it will show good strength and  may give moderate to good rise. Similarly the alert points for long trades are 8132, 8040 & 8020(it changes every day) and exit point is below 7940.

It is important to mention here that Bank Nifty had not moved in sync with Nifty today ,in fact it showed weakness , it is needles to mention here that Bank Nifty influence nifty’s movement to a greater extent ,therefore if Bank Nifty does not show strength in next 2-3 days instead weakens further then nifty may also fall in line. So be watchful and keep an eye on Bank Nifty movement as well to have balanced trading approach.

TRADING STRATEGY  FOR-7-10-15

1.Long call can be tried  now or on the dip but not below 8020 ,the authentic stop loss for long trade would be slightly wider below 7940 ,one can place shorter stop loss below 7990 also. 

2. Short call can only be tried if it sustains below 7940 with a stop loss of above 8000.

3.Aggressive trader can try short call  if it sustain below 8005 with a stop loss of above 8065.

Remark:-The long term trend is still down but short and intermediate trend is looking up. Therefore it is suggested to adopt buy on dip strategy till it holds 8020.   

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.