CNX-NIFTY
Closed at 7783.35 on 10-11-15.(Open-7877.60/High-7885.10/Low-7772.85)
Support:- 7723/7691.20/7678/7667/7539.50/7422.15/7295/7118.
Resistance:-7840/7930/7940/7960/7997/8055/8065/8088.60/8091.20/8116.10/8195.65/8269/8272.80/8282.70.
As expected it broke the level of
7795 today (see my post for 9-11-15) and technical parameters further indicates
that it could test the bottom of 7539.50 it made on 8-9-2015 in coming days. Please note that since it is falling for the
last five days, therefore it could give a short pull back rally from here
before further fall, if it moves above 7790 and sustain, so for those who want
to take advantage of this expected up move may try long trade above 7790 with a
stop loss of below 7759, but as you are already aware that pull back rallies
are treacherous in nature can trap you, so be vigilant and cautious if you
initiate long trade. Since it is in down trend and major technical indicators
suggesting down move to continue, therefore it is advised to avoid fresh long
call till it gives visible sign of bottom formation, instead short call can be
tried on the rise at appropriate points but below 7930.65 with a stop loss of
above 7970 or below 7771 with a stop loss of above 7810.Please avoid short call above 7771. Going down it will find support
at 7723/7691/7667/7539.50/7422.15/7295 which may please be noted.
Remark:-The long term
trend is down and the short term trend has also turned down and as the
technical parameters indicating further fall ahead therefore long trade is
completely ruled out for now. It would be better to try short trade as
suggested above because looking at price behavior for last few days’ short
trade seems safer option.
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.
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Thank you for sharing your views.