Tuesday, 19 January 2016

CNX-NIFTY-A TECHNICAL VIEW--20-1-2016

CNX-NIFTY

Closed at 7435.10 on 19-1-2016(Open-7381.80/High-7462.75/Low-7364.15)

Support:-7425.80/7422/7295/7118.45/6868.85/6638.55.

Resistance:- 7437.80/7463.65/7539.50/7551.05/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It closed with a gain of 84.10 points today but the under tone is still terribly weak. Although it posted gain today and respected its crucial support of 7295 yesterday but looking at the overall technical weakness it cannot be said convincingly that whether it will hold this level in coming days/weeks or not and if this level is taken out then it will trigger bigger fall which can drag it down to 7118.45/6825/6650 levels. 

In view of the overall weak technical setup it would be safe to try long call only if it moves and sustain above 7539.50 with a stop loss of below 7500 but aggressive trader can try long call for this on- going week if it maintains above 7420.35 with a stop loss of below 7400 similarly short call can be tried if it maintains below 7400 for some time with a stop loss of above 7465. Please note that long trade could be a risky proposition below 7539.50 which may be kept in mind.   

Remark:-The long term trend is down. Although it gave a pull back today but the required strength was missing therefore it is suggested to avoid long call below 7539.50. But aggressive trade can still try long call 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 pointsDO 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.




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Thank you for sharing your views.