CNX-NIFTY
Closed at 7436.15 on 25-1-2016(Open-7468.75/High-7487.15/Low-7421.20)
Support:-7422/7295/7241.50/7118.45/6868.85/6638.55.
Resistance:- 7539.50/7551.05/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.
After an excellent gain of more than
140 points on 22-1-2016, as expected it did give upside break from the weekly
range upper band of 7470.90(see my post for 25-1-2016) but could not hold on above
it and also failed to build on the previous days gain today and barely closed
with only 13.69 points gain, which indicate that the earlier rise was because
of sheer short covering and lacked real strength therefore this on-going up
move may not last long and can fizzle out any time. However as long as it holds
7350 on the closing basis there is some hope that it may moves sideways with slight up bias but fresh long call should be avoided below 7414 for
sure. Please note that today’s move was concerning for this up move to
continue, so watch out. Please also note that it will only get stable if it
moves and sustains above 7539.50.
For 27-1-2016 long call can be tried
above 7423, above 7446 and then above 7471 with a stop loss of below 7395, 7414
and below 7450 respectively. It would be relatively safe to try long call above
7446. Although short call could be a risky proposition here, but in view of
today’s weak move, it can be tried if it maintains below 7395 with a stop loss
of above 7425.
Remark:-The long term
trend is still down. In view of the above chances of the on-going up move to
continue is still alive as long as it holds 7350 on closing basis. I once again
reiterate that since it is a pullback rally as of now long trader should be
extra vigilant in their trade position.
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.
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Thank you for sharing your views.