CNX-NIFTY
Open-7972.50—High-8022.60---Low—7942.05—Close—7985.75
on
23-12-2016
Support:- 7952.55/7946/7938/7927/7916.40/7897/7859/7807/7735-7714.
Resistance:- 7988/7992/8002.25/8021/8056.86/8077.50/8108.50/8132.50/8224.50/8230.65/8244/8257.42/8261.75/8274.95.
As envisaged it
made a recovery after hitting a low of 7942.05 and went up to make a high of 8022.60
for the day before closing positive but merely by 6.64 points and that too
after seven days of fall, which shows gross weakness in it. However this relief
rally may continue for few days provided it holds 7979 level on the closing
basis. Moving up the relief rally may get exhausted at any of the following
points 8021/8070/8109/8148/8197; use these points as the trailing stop loss in
both side trades. It is needles to mention here that the relief or pullback
rallies are treacherous in nature and can end abruptly therefore traders should
be very careful in long trades because they may get trapped at higher levels. Please
note that close below 7979 may trigger fresh fall but since it has strong
support in the range of 7952.55---7897.25 therefore fall will only accelerate if
it sustains below 7897.25 level. It is therefore suggested to stay neutral in
the range of 7916—7897 and take action with the market movement at that point
of time.
The trend is
down therefore it is suggested to avoid long call in general but in view of the
above observation those traders who want
to take advantage of the expected continuation of today’s short up move , can
try long call if it sustain above 7992 with a stop loss of below 7970 for a
target of 8021/8057/8077. Similarly short call can be tried if it trades below
7979 for some time with a stop loss of above 8003 for a target of
7942/7927/7916/7897/7859/7829.
Remark: - The uptrend is severely threatened and
it is already in the downtrend now. After seven days of straight fall it had a very
short up day today and it may continue for another 2-3 days, but the overall
technical setup is very weak, therefore it is suggested to avoid long trade in
general. But now it is in midst of such a situation therefore at this point of
time both side trade can be tried depending upon market movement and as
suggested above. The overall technical setup is hugely bearish now.
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.