CNX-NIFTY--A TECHNICAL VIEW--28-1-2016

CNX-NIFTY

Closed at 7437.75 on 27-1-2016(Open-7469.60 High-7477.90/Low-7419.70)

Support:-7422/7295/7241.50/7118.45/6868.85/6638.55.

Resistance:- 7471/7539.50/7551.05/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It opened on a firm note and once again gave upside break from the weekly range upper band of 7470.90 but could not hold on above it today also and just managed to close with a meager gain of 1.60 points. It lacked the required strength to move up but also did not show the desired weakness either. Furthermore it is above some of its short term moving averages and certain other technical indicators also pointing towards an up move provided it holds 7350 on the closing basis then the chances are that it could give moderate to reasonable rise from here, moving up seems likely as of now if it holds 7350 mark.  But long call should be avoided below 7414 for sure. Please note that it will only get stable if it moves and sustains above 7539.50.

For 28-1-2016 long call can be tried above 7445 or if it sustains above 7471 with a stop loss of below 7400 & below 7445 respectively.

Remark:-The long term trend is still down. In view of the above chances of the on-going up move to continue is still alive as long as it holds 7350 on closing basis. I once again reiterate that since it is a pullback rally as of now long trader should be extra vigilant in their trade position.    

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.