CNX-NIFTY-A TECHNICAL VIEW--8-10-2015

CNX-NIFTY

Closed at 8177.40 on 7-10-15.

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

Resistance:-8195/8225/8269/8272.80/8282.70/8315.40/8321.75/8337.95/8359.75/8489.55/8504.95/8530.60/8561.35/8621.55.

It opened on a flat to slightly negative note at 8146.20 and made a low of 8132.90 and a high of 8188.90 before closing the day near the high at 8177.40.Today it moved within its important range of 8132(it changes every day)—8195.65. Technically looking ok now but as said earlier it will show good strength if it moves above 8195.65 mark and sustain and on the downside it will remain good technically as long as it holds 8040 & 8000 mark ,therefore fresh buying is suggested if it crosses and sustain above 8195.65 or on reasonable decline and not at the present level. Please note that the alert points for long trades are at 8132, 8040 & 8020 and exit point is below 7940 which may be kept in mind while initiating trades, It is suggested to  slow down the pace of buying on decline if alert points are broken because then you may get a chance to buy near the next point. Fresh buying should be completely avoided below 8020. 

It is important to mention here that today was the 6^th day of rise, so it is getting highly vulnerable for correction and with each passing rising day its vulnerability for correction will increase, therefore be alert and don’t get trapped at higher levels because correction can happen tomorrow or may be in another 2-3 days which may please be noted. As of now any correction would be a buying opportunity till it holds 8020 but not to forget the first alert point of 8132.

TRADING STRATEGY FOR-8-10-15

1. Long call can be tried near 8132 then near 8050—65 and finally near 8020 with a stop loss of below 7940, one can place shorter stop loss below 7990 also or buy if it sustain above 8195.65 with a stop loss of below 8120.

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 for 8-10-2015 it is suggested to buy only if it crosses 8195.65 mark and sustain or on reasonable decline but not below 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.