CNX-NIFTY--A TECHNICAL VIEW--29-1-2016

CNX-NIFTY

Closed at 7424.65 on 28-1-2016(Open-7426.50/High-7468.85/Low-7409.10)

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 has been oscillating in a short range for last two days and today closed with a loss of 13.10 points. It is not showing the required strength for moving up but at the same time it is also holding on to its important point of 7414 and 7350 for the on-going up move to continue. Therefore as long as it holds 7350 level on the closing basis, chances of giving a short up move is still alive. But fresh long call should be avoided below 7414 for sure. It is important to mention here that it will get stable only if it moves above 7539.50 and sustain.

For 29-1-2016 long call can be tried if it sustains above 7441 with a stop loss of below 7400. Although short call could be a risky proposition here, but in view of today's down close, it can be tried if it maintains below 7395 with a stop loss of above 7425.

Please do not forget that it is in down trend and the on-going up move which started from 7241.50 is a pull back rally and as you are already aware that these rallies can end abruptly also, so be watchful in long trade at least.

Remark:-The long term trend is still down. In view of the above chances of the on-going up move to continue is still there as long as it holds 7350 on the closing basis, so long call be tried as suggested above but since it is a pullback rally as of now therefore 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.