CNX-NIFTY-A TECHNICAL VIEW FOR—21-4-2016

CNX-NIFTY

Closed at 7914.70 on 20-4-2016 (Open-7980.05/High-7950.40/Low-7877.55)

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 opened with an up gap but could not sustain there and after sometime slipped below the previous day’s close and gave good intra-day correction but closed the day with a negligible rise of .05 point. So technically it was the 6^th straight day of rise, it is needless to mention here that with each passing rising day the vulnerability of down correction on the closing basis is increasing. In this context it is also important to note that it crossed its most crucial points of 7938.45 & 7946.35 for the year 2016 intra day but slipped below, please note that sustained close above the aforesaid points only could keep the on-going up trend intact or else the rally may end, so watch out and wait for the close above 7946.35 level. Furthermore the range of 7923—7980(see my post for 20-4-16) is very tough range to cross. It is therefore suggested to try fresh long call only if it moves and closes above its critical point of 7946.35 for the year 2016 or it would be better and safe to try long call above 7980 because if it moves above 7980 and sustain then it may go beyond 8200+ level also. Its technical setup is o.k. now and indicate that it may give further rise with in between down correction therefore it is buy on dip market now , but since it is near its tough resistance range and has not corrected on the closing basis as yet therefore correction on closing basis may creep in anytime, so to take advantage of the down correction the contrarian trader can try short call also on the rise near 7950 then near 7980 but not above it with stop loss of above 8020. The trend is up therefore It could be a risky trade but worth trying.         

For 21-4-2 In view of the very tough resistance range ahead and keeping in mind that it has not corrected on the closing basis it is suggested to avoid long call now instead  try short call near 7950 level then near 7980 with a stop loss of above 8020. Please watch the market for some time before initiating any trade.

 

Remark: - It is suggested to avoid long call now, and try short call as suggested above.

 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.