CNX-NIFTY-A TECHNICAL UPDATE--31-12-2015

CNX-NIFTY

Closed at 7896.25 on 30-12-15.(Open-7938.60/High-79/Low-7902.75)

Support:- 7894/7888.75/7852.90/7840/7817/7723.85/7714.15/7691.20/7678/7667/7575.30/7539.50/7422/7311/7295/7119

Resistance:-7940/ 7960/7979.30/7997/8055/ 8065.

As perceived that it could move either way, it gave downside move today and made a copy book reversal on the bar chart. It also decisively broke its short term trend line drawn from it recent bottom of 7551.05 which it made on 14-12-2015. Today’s reversal bar and break of trend line was upsetting and indicate that the on-going up move may be over. But there is still some hope left for a bounce back from here or may be from little lower level as it has been making higher tops & bottoms on the line chart and now it is above its last bottom which is at 7861.05, secondly it is still above its short term moving average range which is between 7871---7787(it changes every day) for 31-12-2015. So as long as it holds the bottom of 7861.05 on closing basis one can be positive but overall today’s move was very disturbing and can open downside if 7860 and then 7780 is taken out, so be alert and watchful. For 31-12-2015 avoid fresh long trade below 7888 and exit all long position if it consistently trades below 7850.

Although it has not given clear cut sell signal now but in view of the reversal bar it made and broken trend line, the aggressive trader can try short call below 7880 with a stop loss of above 7930, fearless short trade should only be attempted below 7800.      

Remark:-The long term trend is down. It made reversal bar today and broke short term rising trend also. Therefore it is suggested to avoid fresh long call below 7888.

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.