CNX-NIFTY--A TECHNICAL VIEW--16-11-2015

CNX-NIFTY

Closed at 7762.25 on 13-11-15.(Open-7762.45/High-7775.10/Low-7730.90)

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.

It had a gap down open today at 7762.45 and made a high of 7775.10 and then a low of 7730.90 before closing the weekend on a dismal note at 7762.25. So further fall is not ruled out from here but please note that the gap it created today is still there and if it makes an effort to fill this gap in next 2-3 days then it can bounce back to 7820 level at least and if it moves above 7825 and sustain then it can rise further , secondly the 76.40% retracement point from the top of 8336.30 and bottom of 7539.50 was at 7727 and a major bottom  at 7723 and it had respected both the levels today, thirdly it has made a falling wedge, so  rise from here or may be after a short fall is possible ,fourthly  it has cluster of support in the range of 7723—7667 and lastly some technical indicators are also pointing a possible upside move before it witness any further fall. Therefore overall chances of moving up are looking reasonably good till it hold the range of 7723-7667. Therefore long call can be tried above 7780 or on dip but not below 7723 with a stop loss of below 7723 and 7667 respectively, avoid adding fresh long call below 7723, however aggressive trader can try long call near 7667 also with a stop loss of below 7630. It would be safe to try long call above 7780. Please note that whatever up move if it happens would be a pull -back rally only and it could possibly get exhausted at these levels 7874/7962/8034/8105 or earlier also. Since the trend is down therefore trades should be very cautious and careful in long trade and if it consistently starts trading below 7723 then avoid fresh long call for the entire week starting from 16-11-2015 till it bounce back above 7731 and sustain.

It is important to mention here that since it has extremely good support in the range of 7723—7667 therefore short call should be avoided in this range and can only be tried if it consistently trades below 7667 with a stop loss of above 7740.

Remark:-The long term trend is down and the short term trend has also turned down but chances of a pull -back rally looks possible from here therefore long 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.