CNX-NIFTY--A TECHNICAL VIEW-22-1-2016

CNX-NIFTY

Closed at 7276.80 on 21-1-2016(Open-7376.65/High-7398.70/Low-7250)

Support:-7241.50/7118.45/6868.85/6638.55.

Resistance:- 7295/7422/7425.80/7435.10/7463.65/7539.50/7551.05/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

As expected it broke and closed below its most crucial point of 7295 today and if it sustain below this mark the on-going fall may accelerate and going down it will find support at 7118.45/6869—6825/6650. Although technically it is on a very weak footing but one technical indicator is showing some positive sign, so it may give some rise from here provided it moves and sustain above 7295. Please note that it will only get stable if it moves and sustains above 7539.50.

For 22-1-2016 since it has closed below its most important point, therefore short call can be tried if it maintains below 7295 with a stop loss of above 7340, similarly long call can tried if it maintains above 7295 with a stop loss of below 7240 . Long call can be tried successfully if it moves and sustain above 7435 with a stop loss of below 7400. I once again reiterate that long trade could be a risky proposition below 7539.50 which may be kept in mind.  

  

Remark:-The long term trend is down. Since it broke and closed below its most important level of 7295, so long call should be avoided below this mark for sure, similarly short calls above 7295.   

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.