CNX-NIFTY-A TECHNICAL VIEW FOR—20-4-2016

CNX-NIFTY

Closed at 7914.70 on 18-4-2016 (Ope-7908.15/High-7920.60/Low-7842.75)

Support: - 7873/7772/7723.85/7714/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: - 7938.45/7946.35/7961.35/7972.55/7979.30/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.

It is moving up vertically and unabated and today was the 5^th straight day of rise. It looks good technically and the trend is up, but with each rising day the vulnerability of correction is increasing, however it may rise few more days before it corrects. But please note that in between down correction is necessary for a steady up move but its vertical up move is concerning because it may have vertical correction also anytime. So one has to be extremely careful  in the long trade now ,furthermore  it is also very near to its critical resistance range of 7923—7980(see my post for 18-4-2016) and after this the next set of resistance range is between 8055---8196. However if it moves above 7980 and sustain then it may go beyond 8200+ level also. Please note that its critical point for the years 2016 are at 7938.45 & 7946.35 and sustained close above these points may keep the up trend intact. So for safe trader it is suggested to wait for it to close above 7946.35 to initiate fresh long trade.

For 20-4-2016 for day trader long call can be tried if it moves and maintains above 7921 with a stop loss of below 7840 and book profit on the rise in the range of 7945—7980+. If it opens with an up gap in the range of 7950--7980 then avoid fresh long call and at least book profit in 50% of the existing long trade on the rise and watch the balance long position till it breaks 7945 and exit long trade below 7910. It would be worth trying 8000 put option around 7980+ range with a stop loss of above 8055. 

Remark: -It view of the above observation existing long trade commitment should be lightened if not exited completely in the range of 7945—7980+ and wait for it to close above 7946.35 for trying fresh long call the next day.

 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.