CNX-NIFTY-A TECHNICAL VIEW FOR—2-5-2016

CNX-NIFTY

Closed at 7849.80 on 29-4-2016 (Open-7844.25/High-7889.05/Low-7788.70)

Support: - 7842/7820/7772/7723.85/7714/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: - 7938.45//7946.35/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.

                      

It had a volatile day and it gave wild swings of more than 100 points both ways before closing the day just 2.54 points above the previous day’s close. The overall technical setup is not that bad but since it broke its recent bottom of 7855.05 on the line chart and is also below its short term moving averages, therefore it is slightly on a weak footing so one can still   follow sell on the rise strategy till it moves and closes above 7992(see my post for 28-4-2016), but one should be alert in short trade if it moves and sustain above 7901 and then 7947.However until and unless it closes above 7992 it is not likely to regain the up momentum and at this point of time it looks slightly difficult to cross this level. 

The range for the week starting from 2-5-2016 is between 7992---7847.25--7788.70 and it is near the lower end of the range now,  since it is showing weak sign chances of it drifting lower are quite bright. The trader should structure their trade keeping the above range in mind. Since it is sell on the rise market now, therefore it is suggested to avoid long trade in general but the contrarian trader who wish to try long call can try it, if it maintains above 7850 but do not attempt long trade below 7847.25 in any case. Similarly short call can be tried on the rise at proper points or sell for sure if it trades below 7842. Please note that if it breaks the 7788.70 level and sustain the long trade should be avoided for the entire week, instead short call should be tried for sure.

  

TRADING OPTION FOR-2-5-2016

1. Long call is not suggested but the aggressive and contrarian trader can still try it, if it maintains above 7850 with a stop loss of below 7810 for a target of 7889/7901/7915/7938/7947. It could be a highly risky trade.

2. Sell on the rise but not above 7992 with a stop loss of above 8055. The possible sell points could be at 7901/7915/7930-50/7992.The ultimate stop loss is above 8065. But it is advised to use self defined stop losses with the help of resistance points mentioned above for the suggested sell point’s trade to manage your trade in a better way.

3. Sell below 7842 with a stop loss of above 7910 for a target of 7822/7788/7777/7772/7723/7714, can add fresh position below 7810 with a stop loss of above 7855.

 4. If it moves below 7788.70 and sustain sell for sure for the entire week with a stop loss of above 7810.

Remark: - It seems that it is sell on the rise market now, therefore long call should be avoided but if initiated should be handled with extreme caution. It looks better and safe to try short call at this point of time.  Please initiate your trade after watching the market for at least 30-45 minutes.   

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.