CNX-NIFTY--A TECHNICAL UPDATE--28-12-2015

CNX-NIFTY

Closed at 7861.05on 24-12-15.(Open-7888.75/High-7888.75/Low-7835.50)

Support:- 7852.90/7840/7817/7723.85/7714.15/7691.20/7678/7667/7575.30/7539.50/7422/7311/7295/7119

Resistance:-7894/7940/7960/7979.30/7997/8055/

8065.

It closed with a minor loss of 4.90 points today but looks good on the chart for short term and still expected to hit 7950+ levels within this month, if it holds 7760 level. For 28-12-2015 it is suggested to buy now or on dip but not below 7835 with a stop loss of below 7800. One can add on fresh long position if it moves and sustain above 7889 with a stop loss of below 7855 for added long position.  Please note that the authentic stop loss for all long trade is below 7760 but short stop loss is suggested so that one can get out early and at a minimum loss in an unfavorable trade. Since short term technical setup looks o.k. therefore short call should be avoided for now.

It is important to mention here that this is a pullback rally as of now and it may get exhausted anytime therefore cautious and careful approach has to be followed in the long trade.

Remark:-The long term trend is down. The pullback rally is still showing strength; so long call should 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.