CNX-NIFTY--A TECHNICAL VIEW-8-1-2016

CNX-NIFTY

Closed at 7568.30 on 7-1-2016(Open-7673.35/High-7674.95/Low-7556.60)

Support:-7551.05/7539.50/7422/7311/7295/7119

Resistance:-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 with a down gap today and made no effort to fill the gap and went down sharply and closed just above the previous  major bottom of 7551.05 & 7539.50 which indicates gross weakness in it, if these bottoms are taken out then the fall will accelerate. Please note that it seems these bottoms will be taken out for sure but tomorrow (very likely) or may be after a breather has to be seen but in any case the steady trend is down, therefore buying is not suggested at all . Moving down it will find support at 7422/ 7295/7119 & 6825. It is definitely a sell on the rise market till it moves and sustain above 7946.35 or show some strength otherwise.   

For 8-1-2016 it is suggested to sell below 7539 with a stop loss of above 7600 for a target of 7422 or sell on the rise but not above 7840 and the possible good sell points could be 7675/7721/7795/7840 with an authentic stop loss of above 7860. One can define and put their own stop losses also with the help of support and resistance point as mentioned above to manage their trade more effectively. It is advised not to go in for long trade for an in between up move any day because that may not be lasting. So buying is not recommended till it shows some visible 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. Short trades can be initiated as suggested above. Buying should be avoided now.

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.