CNX-NIFTY-A TECHNICAL VIEW FOR—25-4-2016

CNX-NIFTY

Closed at 7899.30 on 21-4-2016 (Open-7891.80/High-7923.35/Low-7873.35)

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 on a negative note and went down further then recovered from the low of the day and went above previous day’s close but finally closed with a loss of 12.75 points. The technical setup is looking good and in short term as long as it holds 7842—7800 range on the closing basis it seems that the up move may continue with in between short down correction. Please note that the long term uptrend  will remain good till it holds 7629(it changes every day) and only sustained break below 7539.50 will end the up move for good for sometime and may trigger severe down correction. So be alert below 7800 because then the on-going uptrend could be in danger.

The range for the week starting from 25-4-2016 is between 7980—7842 and breakout on the either side will decide the direction which way it will move during the week .So till breakout happens one can  trade the range both ways. In this regard please note that the sustained close above its most crucial points of 7938.45 & 7946.35 for the year 2016 and crossing of 7980 level is very essential  for the up momentum to continue. Therefore the range of 7938.45—7980 could be termed as a make or break range and if it fails to cross 7980 level soon then this rally may end here and down journey may begin. Therefore it is suggested to attempt long trade only above 7980 because if it sustains above it then it could hit 8200+ levels. At present it is critically poised, so be alert and watchful.  

       

For 25-4-2016 please watch the market for some time before initiating any trade. It would be safe to try long call if it moves and sustain above 7980 but aggressive day trader can try long call if it maintains above 7925 with a stop loss of below 7890 for a target of 7939/7947/7980/8020, it could be a risky trade mind you. Short call can be safely tried if it moves and sustain below 7842 with a stop loss of above 7915 for a target of 7800/7777/7738, but short trade can also be initiated if it maintains below 7870 for some time with stop loss of 7925 for a target of 7842/7800/7777/7738. Please avoid long call for the entire week if it moves and sustain below 7842.    

Remark: - It is in a range of 7980--7842 now so one can trade the range both ways or trade as suggested above but as far as long trade is concerned it would be safe to try it above 7980 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.