CNX-NIFTY--A TECHNICAL VIEW--30-12-2015

CNX-NIFTY

Closed at 7928.95on 29-12-15.(Open-7929.20/High-7942.15/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.

It moved in a short range of 40 points today and closed just 3.80 point above its previous close, which indicates that moderate to sharp move on either side is imminent in coming days.  It rallied more than 390 points from 7551 to 7942 in 11 trading session, so it may be either near exhaustion or will take a breather here before it moves up again has to be seen. Therefore it is advised to handle long trade with extreme caution and care. Please note that the short term technical setup still looks o.k. but the long term setup is weak, furthermore it is pullback rally as of now and it may fizzle out anytime but certain technical parameter still indicate that it may hit 7950+ level or may be above 8000 in coming days provided it holds 7860 level. So for 30-12-15 watch the market for some time then buy on dip but not below 7900 with a stop loss of below 7860 for a target of 7960. Moving up it will face stiff resistance in the range of 7940—8000. Exit all long trade position below 7860.    

Remark:-The long term trend is down. Long call can still be tried as suggested above but with extreme caution. It is better to watch the market for some time before initiating trade.

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.