CNX-NIFTY- A TECHNICAL UPDATE--16-12-15

CNX-NIFTY

Closed at 7700.90 on 15-12-15.(Open-7659.15/High-7705/Low-7625.10)

Support:-7691.20/7678/7667/7575.30/7539.50/7422.15/7295/7118/6869.

Resistance:-7714.15/7723.85/7840/7940/7960/7997/8055/8065.

It opened firmly and thereafter moved into negative territory and traded for quite sometime below previous days close but in the 2^nd half of the day it moved above the benchmark point of 7653(see my post for 15-12-15) and then steadily moved up and closed near the days high. As expected it had an up day and looking at today’s move it seems that this up move may continue for few more days, therefore it is suggested to try long call on dip but not below 7650 with a stop loss of below 7610. Moving up it would face resistance from Fibonacci retracement point at 7715/7766/7817 & 7879 and from its short term moving average range which is now between 7686--7800(it changes every day), so if it moves above 7817 and sustain then this rally could extend further, chances of which seems likely. So watch out.

It is important to mention here that since overall technical set up is weak now and it is a pull -back rally and these  rallies may fizzle out abruptly also, therefore long call should be handled with extreme caution and care. It is advised to avoid short call for now.   

 Remark:-The long term trend is down. Looking at today’s move it seems that this rally may continue for few days, so 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.