CNX-NIFTY
Closed at 7855.05 on 25-4-2016 (Open-7894.80/High-7911/Low-7827)
Support: - 7842/7772/7723.85/7714/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
Resistance: - 7938.45/7946.35/7961.35/7972.55/7979.30/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.
It did break the weekly range of 7980—7842
on the downside but managed to close above it, furthermore it
is also holding 7842-- 7800 range which is essential to keep this up move going.
But today’s movement was somewhat shaky and showed weakness because it closed
below the low of the previous day after eight days which is slightly disturbing.
However the technical setup still looks o.k. therefore as long as it holds 7842
for the week on the closing basis and finally if it holds 7800 levels then it
could still make an attempt to go beyond 7900+ and try to test 7980 point once
again this week and if it does that and fails to cross 7980 mark then this
on-going uptrend may end for good and down move may begin. Please also note that
sustained close below 7800 may end the up trend here also. Therefore it is suggested that long call should only be tried if it moves and sustain above 7980 and it
should be completely avoided below 7842 for the entire remaining week. Since
market exhibited some weakness today and it seems that it may be in its last
leg of the up move, so any up move from here should not be used for long trade instead
one should look for opportunity to sell at the higher levels till it closes
above 7980.
For 26-4-2016 please watch the market for
some time before initiating any trade. Long call should be avoided and can only
be attempted above 7980, but aggressive day trader can try long call if it
maintains above 7860 with a stop loss of below 7827 but it would be relatively safe to try long call above 7915 with a
stop loss of below 7880 for a target of 7939/7947/7980/8020. Looking at today’s
movement long call could be a risky bet. 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. Please avoid long call for the entire week if it moves and
sustain below 7842. Although technical setup is not clearly spelling out to
sell on the rise but In view of the today’s weak movement short call can be tried on the
rise also and the possible sell point could be near but below 7895 /7947/7980 with
a stop loss of above 7920, 7980&8030.
Remark: - It
is in a range of 7980--7842 now but since it broke the range on the downside
today, it is suggested to avoid long call now but aggressive day trader can try
long call as suggested above. It is
however better to look for sell
opportunity in view of today’s weak movement.
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.