CNX-NIFTY-A TECHNICAL VIEW FOR—28-4-2016

CNX-NIFTY

Closed at 7979.90 on 27-4-2016 (Open-7942/High-7991/Low-7940.55)

Support:- 7979.30/7972.45/7946.35/ 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: - 8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.

It gave an upside breakout from the weekly range of 7980(exact point was 7979.30)—7842 today and closed above it, which is a good sign. The technical setup is also good and indicates that it may further move up from here if it holds 7979.30 levels, but as long as it holds 7938 on the closing basis the on-going uptrend may be in place and as of now a close below 7855 only may signal the end of this rally.  In this regard please note that the sustained close above 7979.30 only may take it to 8200+ levels in coming days else the rally may fizzle out. Therefore it is suggested to try long trade above 7979.30 only and traders should get alerted if it consistently starts trading below it. The bias is on the upside now so do not think of short trade now but if there is price breakdown it can be tried as suggested below.

TRADING OPTION FOR-28-4-2016

1. Long call can be tried if it moves and sustain above 7991 with a stop loss of below 7938 for a target of 8055/8065/8091/8166. It is needless to mention here that fresh long trade should not be initiated below 7979.30.

2. Short call can be attempted if it moves and sustain below 7938 with a stop loss of above 7980 for a target of 7894/7855/7842/7822. It could be a risky trade but worth trying.

Remark: - It gave an upside breakout today, so it is advised to try long trade 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.