CNX-NIFTY--A TECHNICAL UPDATE--17-12-2015

CNX-NIFTY

Closed at 7750.90 on 16-12-15.(Open-7725.25/High-7776.60/Low-7715.75)

Support:-7723.85/7714.15/7691.20/7678/7667/7575.30/7539.50

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

It opened with a up gap and it tried to fill the gap during the day but the gap still exist and if it makes an attempt to fill the gap in another 2-3 days it may come down to 7705. Please note that it is still looking good on the technical chart therefore buy on dip strategy is suggested but not below 7650 mark with a stop loss of below 7610. As of now it looks like that it is poised for a steady rise in coming days however in between up move there could be a down day also but not to fear in long trade as long as 7650 mark is intact.

Its Fibonacci support and resistance points are at 7652/7715/7766/7817/7879 and its short term moving average support and resistance are in the range of 7690—7794(it changes every day) so if it moves above 7817 and sustain then(which seems likely) the up momentum may accelerate and it may possibly hit the range of 7940-8070 by the end of this month provided it holds the lower band of the moving average range which is at 7690 for 17-12-15 and finally 7650 mark.  Avoid long trade below 7650 for sure.

It is important to mention here that since the overall technical set up is still weak and it is a pull -back rally as of now, so keep in the back of your mind that this rally may fizzle out abruptly also, therefore long trade should be handled with extreme caution and care. It is advised to avoid short call for now.   

IMPORTANT:- Although present technical set up indicate that it can move up further from here but it is  important to note  here that FOMC meeting outcome tomorrow may impact the market either way, so it is suggested to initiate trade after market stabilizes.

 Remark:-The long term trend is down. The pull back rally is on therefore buy on dip strategy is suggested till it holds 7650 mark.

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.