CNX-NIFTY-A TECHNICAL VIEW--14-1-2016

CNX-NIFTY

Closed at 7562.40 on 13-1-2016(Open-7557.90/High-7590.95/Low-7425.80)

Support:-7556.60/7551.05/7539.50/7422/7311/7295/7119

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 opened firmly today but could not hold on at the upper level for longer and plunged down after some time and almost hit one of its bottom at 7422 but in  later half of the day it bounced back sharply and closed reasonably above its one of the most important level of 7539.50 valid for the entire year of 2016. You would recall that I have been indicating that market may give short up move before it resume down move again and finally it is showing sign of that. (See my post for 12^th & 13^th Jan-2016). Today’s move somewhat indicates that a possible bottom is in place at 7425.80 for now, therefore an up move can be expected till it sustain above 7539.50 on the closing basis and finally holds 7425.80. However it does not seem to be the bottom for good and it may be taken out in coming months which may be kept in mind. But looking at present setup it is suggested to avoid short call now if it sustains above 7539.50 and long call can be tried above this mark. Moving up it will face resistance at 7635/7700-7725/7764/7844 levels. Avoid short trade above 7539.50 for sure.  

For 14-1-2016 it is suggested to try long call now or on dip but not below 7539.50 with a stop loss of below 7500 for a target of 7635 and then 7700-7725. It is advised to watch the market for some time before initiating trade. Although today’s move indicate that a possible bottom is in place but since it is overall weak technically, therefore it is suggested to handle long trade with extreme caution and care and short trade can also be tried if it moves and sustain below 7500 for some time with a stop loss of above 7560.   

Remark:-The long term trend is down. It seems that a bottom is in place today therefore long call can be tried as suggested above and short call should be avoided above 7539.50 and can only be tried below 7500.

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.