CNX-NIFTY- A TECHNICAL VIEW-7-1-2016

CNX-NIFTY

Closed at 7741 on -1-2016(Open-7788.05.40/High-7800.95/Low-7721.20)

Support:-7723.85/7714.15/7691.20/7678/7667/7551.05/7539.50/7422/7311/7295/7119

Resistance:-7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It has been falling for last three days and today it almost hit the retracement level of 7712 which is 76.40% point derived from the top and bottom of 7972.55 and 7551.05. Please note that it took 14 days to make the top of 7972.55 from the bottom of 7551.05 but it has eaten up almost 76.40% of the entire up move in just three days which speaks of tremendous weakness in it. Since it retraced almost 76.40% and it has cluster of support in the range of 7723—7650 therefore it could stage a short up move from here may be for a day or two before fresh down slide begins provided  it holds 7650 level.  Please note that break below 7650 can possibly make it test or break the earlier bottom at 7551.05 & 7539.30 It is needless to mention here that down move is on and it is sell on the rise market till it moves and sustain above 7946.35.  

For 7-1-2016 in view of the above it is suggested to initiate fresh short trade below 7650 or sell on the rise but not above 7863 if it moves above 7863 and sustain then give a pause for fresh selling and try short call again near but not above 7938. The authentic stop loss in both the situation would be above 7990. But short stop loss of above 7890 is suggested for the short call initiated below 7863. The aggressive trader can still try short call below 7712 with a stop loss of above 7750 for a target of 7650(it could be a risky trade).The possible short points are 7810/ 7837/ 7860. It is suggested not to go in for long trade for an anticipated one or two days up move because that may not be lasting. So buying is not recommended till it shows some strength.

Remark:-The long term trend is down. Since down move is on therefore broadly sell on the rise strategy is suggested till it moves and sustain above 7946.35. Trades can be initiated 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 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.