CNX-NIFTY-A TECHNICAL VIEW-1-2-2016

CNX-NIFTY

Closed at 7563.55 on 29-1-2016(Open-7413.35/High-7575.65/Low-7402.80)

Support:- 7551.05/7539.50/7422/7402.80/7295/7241.50/7118.45/6868.85/6638.55.

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.

After moving in a short range for three days, as perceived (see my post for last four day) it gave a robust up move today and it has crossed all its short term moving averages and most importantly it has closed above it’s one of the very crucial and benchmark point of 7539.50 for the entire year of 2016 which is a very good sign. Furthermore it has made higher top and bottom on the line chart and certain technical indicators also points towards further rise.  Therefore it seems that this rally may continue for few more days provided it holds its recent bottom of 7424.65 on the line chart on the closing basis (it is likely to hold).

In view of the above it is suggested that one can buy now or on dip but not below 7539.50 with a stop loss of below 7500,if this stop loss is triggered then try long call near 7440—7425 with a stop loss of below 7400 or else when it  moves above 7539.50 mark again. Please note that it would be relatively safe to try long call above 7539.50. Moving up it will face resistance at 7608/7654-7694/7724 & 7801. Similarly good support exists at 7539.50/7520/7422/7414/7402.

 Please note that profit should also be booked in favorable trade from time to time at the appropriate points(see support and resistance) so that you can take advantage of the market swings and can re- enter again at lower levels.

It is important to mention here that the on-going up move is a pullback rally as of now and as you are already aware that these rallies can end abruptly also, so be extra watchful in long trade.

Remark:-The long term trend is still down. Today’s stupendous up move suggest that this on-going up move may continue for few more days, therefore long call should be tried as suggested above but not below 7539.50. Please not to forget that it is a pullback rally as of now therefore long trade 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.