CNX-NIFTY-A TECHNICAL UPDATE--22-12-15

CNX-NIFTY

Closed at 7834.45on 21-12-15.(Open-7745.65/High-7840.75/Low-7733.45)

Support:-7817/7723.85/7714.15/7691.20/7678/7667/7575.30/7539.50/7422/7311/7295/7119

Resistance:-7840/7852.90/7940/7960/7979.30/7997/8055/

8065.

As anticipated it bounced back today and almost recovered last day’s loss and closed near the high of the day. It crossed all its short term moving averages today which is good sign. Technical indicator  still suggest that it could go beyond 7950 level but after all it is a pullback rally and cannot be relied upon blind folded as the weekly and monthly chart are still weak, therefore it is suggested to have cautious approach in trading long. So for 22-12-2015 existing long trade should be held if it moves above 7853 in the early trade and sustain otherwise book at least part profit for sure and exit all long position if it fails to cross 7853 mark in first hour of trade, so now fresh long call should be avoided below 7853. However whenever it crosses 7853 mark during the day and sustain for sometime then fresh long position can be created again for a target of 7900+. Please note that the authentic stop loss for all long trade would be below 7750, but if you wait till then all your profit would be wiped out and you would end up losing. So the suggested short stop losses are below 7817/7781/7775/7761, it is therefore advised to have your own stop loss depending upon your trade initiation point so that you can get out of the unfavorable trade at a minimum loss.       

 Remark:-The long term trend is down. It bounced back as anticipated so fresh long call can be tried if it moves and sustain above 7853 and existing long trade should be exited if it remains below 7853 for a reasonable time period.

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.