CNX-NIFTY--A TECHNICAL VIEW--5-11-2015

CNX-NIFTY

Closed at 8040.20 on 4-11-15.(Open-8104.90/High-8116.10/Low-8027.30)

Support:-7997/7960/7940/ 7840/7759/ 7723.

Resistance:-8044/8055/8065/8088.60/8195.65/8269/8272.80/8282.70/8315.40/8321.75/8336.30/8337.95.

 With today’s lower close of 8040.20, it has made a lower top of 8060.70 and broken the recent bottom of 8050.80 on the line chart thereby giving indication that this pull back rally may be over but there is a glimmer of hope that this rally may still be on as it is holding the recent bottom of 7995.60 on the bar chart, so break below this mark will confirm the end of this rally. Please note that now if it closes above 8066 and sustain then it could give a fresh up move else down move should continue but it is important to mention here that it will gain strength only once it closes above 8134(it changes every day) and then above 8195.65 and sustain it for at least 3-4 days which should be kept in mind. The range for it is between 8066---7995(on closing basis) as of now. In view of the above long call should be avoided till it closes above 8066 or can be tried near 7930 but not below this mark with a stop loss of below 7900. Down move is on therefore it is suggested to try short call instead below 8044 with a stop loss of above 8092.

Please also note that long call should be completely avoided for the rest of the on- going week below 8044 and below 7930 for the entire month of November-2015 till it bounces back above this mark again and sustain. The bias is down now.

Remark:-The long term trend is down and the short term trend is also threatened therefore it is suggested to avoid long call till it gives visible sign of bottom formation. It would be safe to try short call 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.