CNX-NIFTY--A TECHNICAL VIEW--1-1-2016

CNX-NIFTY

Closed at 7946.35 on 31-12-15.(Open-7897.80/High-7955.55/Low-7891.15)

Support:-7946/ 7940/7894/7888.75/7852.90/7840/7817/7723.85/7714.15/7691.20/7678/7667/7575.30/7539.50/7422/7311/7295/7119

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

As expected it hit 7950+ level (see my earlier post) today and closed just below this mark but ended near the high of the day. Its short term technical setup is still looking o.k. furthermore it has negated the yesterday’s reversal bar completely which is a good sign, its recent bottom on the line chart is at 7896.25 and it is well above it, it is also running above all its short term moving averages and the range for which is between 7889—7788(it changes every day) for 1-1-2016.  But since it has achieved its expected target of 7950+ and entered the tough resistance zone of 7940—8000 one should have cautious approach in initiating fresh long trade now and for existing long trade exit position if it consistently trades below 7946 so that one can still clock in some profit in trade. But please note that the authentic stop loss for all long trade now is close below 7896 or if it consistently trade below 7860 during the day. For 1-1-2016 before initiating trade let the market settle down after open and then take action, avoid long call below 7946 and try if it moves and sustain above 7956 with a stop loss of below 7930 or try near but not below 7900 with a stop loss of below 7860. It would be safe to try long call above 7956 with suggested stop loss.

Remark:-The long term trend is down. Since it has achieved the expected target and entered the tough resistance range, but long call can still be tried as suggested above but should be handled with extreme caution and care.

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.