CNX-NIFTY--A TECHNICAL VIEW--12-1-2016

CNX-NIFTY

Closed at 7563.85 on 11-1-2016(Open-7527.45/High-7605.10/Low-7494.35)

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.

It went for a tailspin in the early trade today and slumped down by more than 100 points and broke the important bottom of 7551.05 & 7539.50 but in later half of the day it moved up sharply and recovered all the losses at one point of time but finally closed with a loss of 37.50 points. It is extremely weak on the chart and still sell on the rise market but since it has respected its aforesaid important bottoms on the closing basis and some technical parameter are also indicating that it may move up from here before it resume down move again provided it holds the bottom of 7539.50 ,so be watchful here. Moving up the possible exhaustion points could be 7655/7677/7733/7764.

For 12-1-2016 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 only if it gives potential sign of exhaustion, the suggested sell point are 7655/7677/7733/7764. I once again repeat that look for weakness in the price movement before initiating fresh short position on the rise. The authentic stop loss for sell on the rise trade would be above 7790. One can define and put their own short stop losses also with the help of support and resistance point as mentioned above to manage their trade more effectively. Similarly aggressive and contrarian trader can try long call above 7539.50 with a stop loss of below 7480 or try it, if it moves and sustain above 7610 with a stop loss of below 7550.

Remark:-The long term trend is down. In view of the above both short and long call can be tried depending on the price movement and 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.