CNX-NIFTY
Closed at 7404 on 4-2-2016(Open-7411.45/High-7457.05/Low-7365.95)
Support:-7402.80/7295/7241.50/7118.45/6868.85/6638.55.
Resistance:-7422/7539.50/ 7551.05/7563.55/7575.65/7589.50/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.
After two days of severe fall it took
a breather today and closed with a gain of 42.20 points. It is still below its
short term moving averages the range of which is between 7434—7497(it changes
every day) for 5-2-2016. Please note that it will show some strength if it
moves above this range and sustain but it will gain good strength only if it crosses
one of its most crucial and benchmark point of 7539.50 which is valid for the
entire year of 2016. In view of the above observation long call can only be
tried if it closes above its short term moving average range but it would be
safe to try long call if it moves and sustain above 7539.50. It is still sell
on the rise market therefore it is suggested to use the aforesaid moving
average range for initiating short trade as of now.
For 5-2-2016 can sell on the rise using
the range of 7434---7497 as selling range or near but not above 7539.50 with an
ultimate stop loss of above 7590 or can also sell below 7361 with a stop loss
of above 7420. Please note that if it gives indication to close above 7500 then
one should be careful in short position and lighten the commitment.
Remark:-The long term
trend is still down. After two solid down days it had an up day but it is still
clearly a sell on the rise market now; therefore buying should not be attempted
for in between short up moves now. Long trade should only be tried above
7539.50 only.
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.