CNX-NIFTY--A TECHNICAL VIEW--6-11-2015

CNX-NIFTY

Closed at 7955.45 on 5-11-15.(Open-8030.35/High-88031.20/Low-7944.10)

Support:-7940/ 7930/7840/7759/ 7723/7667/7539.50/7422.15/7295.

Resistance:-7960/7997/8044/8055/8065/8088.60/8195.65/8269/8272.80/8282.70/8315.40/8321.75/8336.30/8337.95.

 The on -going up move  in fact ended yesterday as it had  established lower top and  bottom on the line chart  and it has confirmed it today  by breaking the recent bottom of 7995.60  on the bar chart(see my post for-5-11-15). So now the down move is expected to continue, therefore long call should be completely avoided till it closes above 8066 and sustain. Please note that now the important support point for it exist at 7930 and break below this mark will accelerate the fall(it is likely to break) , therefore long call should be  avoided for sure below 7930 for the entire month of November-2015 till it bounce back above it again and sustain . Furthermore it is showing huge weakness on the chart and some of the important technical parameters indicate that it could break 7790 level very soon and then could test or break the bottom of 7539.50 it made on 8-9-2015 and may head much lower. Moving down it will find support at 7840/7723/7767/7539.50 &7422.15 levels. Since the trend is down it is once again suggested to avoid long call now instead try short call below 7930 with a stop loss of above 7970 for a target of 7840/7800 on 6-11-2015.

Remark:-The long term trend is down and the short term trend has also turned down therefore long trade is completely ruled out for me as of now. It would be better to look for opportunity to sell on the rise at proper points now or try short trade as suggested above. Looking at price behavior for last few days short trade seems safe 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.