CNX-Auto Index (Overview for Week Starting-21.4.2014)

CLOSED AT 5915.30 ON 17.4.2014

 The index has completed 11 weeks of rise on trot , furthermore it has made lower bottoms on the line and bar charts at 5811.05 / 5784.50 and 5788.85 / 5763.60 respectively, therefore it is looking highly vulnerable for a down  correction. One should be very careful in the long position of the stocks which comprises index. The bias is up but the traders are advised to take long call only if it crosses 5977.95 and stays above  this with a stop-loss of 5950 but aggressive  and contrarian traders can try a short call near 5960-70 with a stop loss 5990.The support and resistance level of the index are given here under.

SUPPORT:-5788.85 / 5763.60 / 5714 / 5680

RESISTANCE:-5920.75 / 5977.95 / 6115 / 6225

REMARKS:- Trend is up but one technical parameter is showing sign of weakness, therefore long call should be avoided at current level and  can only be taken if it stays above 5977.95.In fact one can try short call near the above suggested level with the adequate stop-loss.

                 NOTE:-1.PRICE STATED HERE IS OF SPOT MARKET.

                  2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

                  3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

Contact me for strategic guidance to enter and exit the trade