CNX-NIFTY--A TECHNICAL VIEW--23-12-2015

CNX-NIFTY

Closed at 7786.10 on 22-12-15.(Open-7829.4/High-7846.30/Low-7776.85)

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

Resistance:-7817/7840/7852.90/7940/7960/7979.30/7997/8055/

8065.

It was suggested to exit all long trade if it did not cross 7853 in first hour of trade and it failed to cross 7853mark and gave sharp downward correction but the stop loss of below 7750 was not violated (see my post for 22-12-15), so chances are that it can still bounce back from here if it holds 7760, therefore it is worth trying a long call here because the stop loss is very near. It is important to mention here that as it has made lower top on the line chart but the bottom it still intact, so it will catch up momentum only if it moves above 7853 and sustain. Hope of crossing this mark is still there. The range for now is 7760—7853. It is suggested to try long call now or above 7817 with a stop loss of below 7750 and can add fresh long position if it moves above 7853 and sustain for a target of 7900+ else book profit in that range. Please note that for added long position the stop loss would be below 7830.

 Remark:-The long term trend is down. It gave sharp correction today but since the stop loss of below 7750 was not violated .It would be worth trying a long call here or 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.