CNX-NIFTY-A TECHNICAL VIEW--15-1-2016

CNX-NIFTY

Closed at 7536.80 on 14-1-2016(Open-7467.40/High-7604.80/Low-7443.80)

Support:- 7425.80/7422/7311/7295/7119

Resistance:- 7539.50/7551.05/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It opened with a huge negative bias and went down further but the silver lining was that it did not break its yesterdays low of 7425.80 and staged smart recovery in the later part of the day and went past yesterdays high but failed to close above its one of the most important level of 7539.50 valid for the entire year of 2016. Since it tested but respected the level of 7425.80 and its earlier bottom of 7422 very next day, so it can be termed as good support level but it cannot be said convincingly that the possible short bottom is in place at 7425.80 because had it been a bottom it would not have been tested the very next day, furthermore technically it is still on a very weak footing, so one should be watchful. However certain technical parameters still faintly indicates that it may give an up move from here before it resume  down move again provided it manages to hold 7425.80—7422 range and moves and sustains above 7539.50. Moving up it will face resistance at 7635/7700-7725/7764/7844 levels. It could gain some momentum after crossing the level 7663 & 7763(it changes every day). It is therefore advised to try long call if it moves and sustain above 7539.50 similarly short calls can be tried below 7500. I once again repeat that although it is technically weak but hope of short up move is still alive as long as it holds 7425.80-7422 range.  

For 15-1-2016 it is suggested to try long call if it moves and sustain above 7539.50 with a stop loss of below 7500 and can add on further position if it moves and sustain above 7562 with a stop loss of below 7520 for added position for a target of 7610 and then 7635. Since overall technical structure is weak 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. It is advised to watch the market for some time before initiating trade. 

  

Remark:-The long term trend is down. It seems that it hangs in balance now therefore both long and short trade can be tried depending on the price movement and as suggested above. In view of the above observation short up move seems possible. 

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.