CNX-NIFTY- A TECHNICAL VIEW -29-12-2016

CNX-NIFTY

Open-8047.55—High-8100.55---Low—8028.40—Close—8034.85 on

28-12-2016

Support:-8002/7992/7988/7946/7938/7927/7916.40/ 7897/7859/7807/7735-7714/7644.

Resistance:- 8056.86/8077.50/8108.50/8132.50/8224.50/8230.65/8244/8257.42/8261.75/8274.95.

It opened on a positive note and hit a high of 8100.55 for the day but could not sustain at the higher level and slipped down and finally managed to close with a meager gain of 2 points but near the low of the day. Although it relatively closed on a weak note today but since it crossed its recent top of 7985.75 on the line chart yesterday therefore it seems that as of now it is still buy on dip market till it holds 7908.25 on the closing basis and finally the level of 7897.25(see my post for 28-12-16). Therefore for 29-12-16 long call can be tried on decline near but not below 7965 with a stop loss of below 7940 or try if it maintains above 8045 for some time with a short stop loss of below 8020 here please note that today it will face huge resistance in the range of 8065-8071. It is therefore suggested to structure your trade keeping the above options in mind. But looking at today’s close buy on decline at proper point would be a better option.

It seems that it is buy on dip market now but moving up the range of 8065—8071 will pose stiff resistance today therefore one can take a contrarian short call also near the said range if it fails to cross the same   for some time with a stop loss of above 8085 or can also try below 8028 with a stop loss of above 8045 for a target of 8000/7986/7965/7942.

Please note that the on-going rise is an up move within the downtrend and it could end abruptly also (see my post of 28-12-2016) therefore be careful in long trades.

Remark: - The uptrend is severely threatened and it is already in the downtrend now. Although today’s close was not that encouraging but still long call can be tried but only on decline and at suggested level but with extreme caution and care. Meanwhile if price movement permits then it would also be worthwhile to try short call 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.