CNX-NIFTY
Open-8043.85—High-8046.45---Low—7964.95—Close—7979.10
on
22-12-2016
Support:- 7952.55/7946/7938/7927/7916.40/7897/7859/7807/7735-7714.
Resistance:- 7988/7992/8002.25/8056.86/8077.50/8121.95/8126/8139.45/8224.50/8230.65/8244/8257.42/8261.75/8274.95
As expected it continued
its down journey today and it not only broke its recent important bottom of
8056.85 decisively but also broke its next important support level of 7988(see
my post for 22-12-16) which indicates gross weakness in it ,therefore it seems
that the on-going fall may continue. However today was the seventh straight day
of the fall and tomorrow is the eighth day which is a Fibonacci number also, furthermore
it has very strong cluster of support in the range of 7952.55—7897.25(see my
earlier post), therefore there may be a faint chance that it may stage a short relief rally from
here or after visiting the range, before
finally breaking the said range, which is very likely to happen because the technical
setup is terribly weak and certain technical indicators as of now indicates
that it may seek much lower levels then the said range in coming days/weeks. But
since the trend is down, therefore it is suggested not to try long call to take
advantage of an expected short relief rally, however those who wish to take
contrarian bet can try long call either above 7992 or near 7916.40 with a stop
loss of below 7960 and 7890 respectively. Although it is sell on the rise
market now but one should be careful in short call in the range of 7952.55—7897.25
and it should be tried on the rise at appropriate levels but aggressive trader
can try short call below 7988 with a short stop loss of above 8020. Short call
can be tried aggressively if it breaks and sustain below 7897 for some time.
In view of the
above it is important to stay neutral in the range of 7916.40---7897.25 and
take action with the market movement as suggested above.
Remark: - The uptrend is severely threatened and
it is already in the downtrend now. The strong support range is very near
therefore it is suggested to structure both side trade considering the above
range of 7952.55--7897.25, but since down move is on therefore it is suggested
to avoid long call else try as suggested above. It is better to move with the
trend therefore sell call could be a better option and can be tried as
suggested above. The overall technical setup is bearish.
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.
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.
Note:
Price stated here is of spot market.
Contact me for
strategic guidance to enter and exit
trade.
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Thank you for sharing your views.