CNX-NIFTY--A TECHNICAL VIEW--23-11-2015

CNX-NIFTY

Closed at 7856.55 on 20-11-15.(Open-7841.90/High-7906.95/Low-7817.80)

Support:- 7840/7723/7714/7691.20/7678/7667/7539.50/7422.15/7295/7118.

Resistance:-7906.95/7930.65/7940/7960/7997/8055/8065/8088.60/8091.20/8116.10/8195.65/8269/8272.80/8282.70.

It had a volatile day today but finally it ended the week on a positive note.  It has made rounding bottom earlier, so it looks like that the up move is still on but in between it can have down day also. It seems that this on- going pull back rally may get exhausted in the range of 8026—8099(maximum), but moving up it would face resistance from its various bottoms and its short to medium term moving averages which are in the range of 7978—7891(it changes every day), now it is within its short term moving average range of 7859—7817(it changes every Day). Once these ranges are taken out and sustained then it can have smooth up rise. It is looking steady now.

As you are already aware that it has cluster of support in the range of 7723—7667(see my earlier post) and break below 7667 will only trigger fresh down move. Its recent bottom is at 7714 therefore the authentic stop loss for long trade would be below 7714 which is much lower than its present close.

In view of the above buy on dip strategies is suggested and add on position keeping the above mentioned range in mind but  fresh long call should be avoided below 7817 and the stop loss for long trade would be below 7800 as of now. Please note that if this stop loss is triggered then you may get a chance to try long call again near the range of 7723—7714 with a stop loss of below 7700.Looking at overall chart pattern it is likely to hold 7800 mark as of now.       

Remark:-The long term trend is down but it seems that the pull back rally is still on therefore buy on dip strategy is suggested.

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.