CNX-NIFTY-A TECHNICAL VIEW FOR—27-4-2016

CNX-NIFTY

Closed at 7962.65 on 26-4-2016 (Open-7828.15/High-7974.50/Low-7822.55)

Support:- 7946.35/ 7938.45/7842/7772/7723.85/7714/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.

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

It again broke the weekly range of 7980—7842 today on the downside and went below yesterdays low also, but it held the important level of 7800, therefore as perceived (see my post for 26-4-2016) it made a sharp U turn around late afternoon and crossed 7900 level(as expected) decisively and closed above its most critical points of 7938.45 & 7946.35 for the year 2016 first time in this year and also came close to its multiple top range of 7980 but did not cross it, however as long as it holds 7938.45 level on the closing basis it can continue the up move . Although it has closed above its important points for the year 2016 but fresh long call should only be attempted if it moves and sustain above 7980 because then only it may hit 8200+ level and it fails to cross this mark then this up move may end here.

The technical setup is good and indicates that it may further move up from here but even then, I once again repeat that long call should only be tried if it moves and sustain above 7980 otherwise not. Since it is at the make or break juncture therefore short call can also be tried if it fails to cross 7980 mark for sometime but avoid short call above 7980 for sure. The on-going up trend may signal end only either if it fails to cross 7980 or if it closes below 7855 as of now. So watch out.

TRADING OPTION FOR-27-4-2016

1. Long call can be tried if it moves and sustain above 7980 with a stop loss of below 7930 for a target of 8055/8065/8091/8166.

2. Short call can be tried if it fails to cross 7980 level for say at least 2 hours with a stop loss of above 8020 for a target of 7946/7938/7894/7855/7842/7822.

3. Short call can be attempted if it sustain below 7930 with a stop loss of above 7965.

4. Short call can be tried if it maintains below 7890 with a stop loss of above 7920.

5. Short call can safely be tried if moves and close below 7855 because close below it may signal the end of this rally.

NOTE: - Although technical setup do not indicate to try sell call here but as it is at a make or break juncture, so if price pattern breaks down then it is worth trying short call.

Remark: - It gave a robust move today and closed near the high of the day therefore one should be alert in sell call now and only  attempt as suggested above. Similarly long call should only be attempted if it sustain above 7980.

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.