CNX-NIFTY--A TECHNICAL UPDATE--11-1-2016

CNX-NIFTY

Closed at 7601.35 on 8-1-2016(Open-7611.65/High-7634.10/Low-7581.05)

Support:-7551.05/7539.50/7422/7311/7295/7119

Resistance:-7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

As expected it took a breather from the four days fall and closed with a small gain of 33.05 points today. After the severe fall the relief rally it witnessed today was lacking strength, furthermore It is already very weak on the technical chart, so the chances are that it may begin further slide from here itself or may be after a little more upside and in that case the possible exhaustion points could be 7655/7721/7764, please note that it came in close vicinity of the first exhaustion point today and retreated which is a weak sign. I once again repeat that it is a sell on the rise market till it moves and sustain above 7946.35 or technically shows some strength otherwise. Therefore long trade is not suggested till it gives visible sign of some kind of bottom formation.

For 11-1-2016 it is suggested to sell below 7539.50 with a stop loss of above 7610 for a target of 7422 or sell on the rise near 7655/7721/7764 which could be the possible exhaustion points of today’s  relief rally with an authentic stop loss of above 7830. One can define and put their own stop losses also with the help of support and resistance point as mentioned above to manage their trade more effectively. Since it has multiple bottom in the range of 7556.60—7539.50 therefore It would be safe to initiate short trade if it moves and sustain below 7539.50.

Remark:-The long term trend is down. Today’s relief rally was very weak and it could fizzle out any moment therefore broadly sell on the rise strategy should be adopted till it moves and sustain above 7946.35 or show strength otherwise. Long trades are completely ruled out till it shows some visible strength.   

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.