CNX-NIFTY-A TECHNICAL VIEW--19-1-2016

CNX-NIFTY

Closed at 7351 on 18-1-2016(Open-7420.35/High-7463.65/Low-7336.40)

Support:-7295/7118.45/6868.85/6638.55.

Resistance:- 7422/7425.80/7437.80/7539.50/7551.05/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It has closed with a loss of 86.79 points today. It is just refusing to stop going down and technically also very weak which is negative sign therefore this fall may continue. But please note that it has a very strong support at 7295 which it may hold but if this level is taken out and sustained then it will trigger bigger fall and then the next good support levels will be at 7118.45/6868.85—6825. It is therefore suggested not to go for long trade till this fall is arrested and it starts showing some sign of strength or try it if it moves and sustain above 7438 with a stop loss of below 7400. Short call can be tried on the rise but below 7425 with a stop loss of above 7450.

It is important to mention here that looking at the time taken in the making of tops and bottoms in recent past it seems that it could make a short bottom by   the end of this week or early next week but at what level has to be seen. . Therefore traders are requested to be circumspect in their trade position. It is needless to mention here that long term trend is down now.

Remark:-The long term trend is down. It is falling relentlessly, therefore it is suggested to avoid long call till the on-going fall is arrested and it shows 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.