CNX-NIFTY--A TECHNICAL VIEW--9-10-2015

CNX-NIFTY

Closed at 8129.35 on 8-10-15.

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 has given a perfect key reversal today, it opened at 8196.75 above the high of  the previous day and closed below the low of the previous day, furthermore it has also broken its first downside most critical support point of 8132.55(it changes every day),therefore in all likelihood the on-going rally seems to be over but the only glimmer of hope is that since it is holding on the neckline which is in the range of 8040-8020  therefore it cannot be said convincingly that the rally is over till the aforesaid points are taken out decisively, however seeing today’s  move in all probability it looks like that the rally may be over, therefore just to be on the safe side  it is suggested to try fresh long trade  only  if it moves above 8196.75 and sustain for at least  3-4 days. However Aggressive traders can try long trade near 8040-8010 but not below 8000 with a stop loss of below 7940. In view of the key reversal today caution is advised in long trades.

TRADING STRATEGY FOR-9-10-15

1.For safe trader fresh long call  should be tried  if it moves above 8196.75 and sustain for 3-4 days with a stop loss of below 8090.

2.Aggressive trader can try long call near 8040-8010 but not below 8000 with a stop loss of below 7940. Please note that in view of today’s key reversal this could be a risky trade.

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

4. Aggressive trader can try short call if it sustain below 7990 with a stop loss of above 8060.

Remark:-The long term trend is still down. In view of today’s perfect key reversal, it is suggested to wait and watch for some time before initiating fresh long trade or trade 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.