CNX-NIFTY-A TECHNICAL VIEW FOR—29-4-2016

CNX-NIFTY

Closed at 7847.25 on 28-4-2016 (Open-7942/High-7992/Low-7834.45)

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/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.

                      

It could not sustain the upside breakout even for a single day and plunged down sharply, breaking its most critical points of 7946.35 & 7938.45 for the year 2016 decisively. It also broke its recent bottom of 7855 on the line chart and closed below it, which is a bad sign and almost confirms that this on-going up move may be over if it does not cross 7992 level in 2-3 days time. Looking at today’s breakdown it seems difficult to cross the said level. Therefore in all probability the on-going rally is over and it has turned sell on the rise market now till it moves and closes above 7992. The range for it now is between 7992---7822, so one can sell on the rise at appropriate levels but not beyond 7992 or can sell below 7822. In wake of today’s breakdown long trade is not suggested but contrarian traders can use the aforesaid range for trying long trade as well if they wish too.   

TRADING OPTION FOR-29-4-2016

1. Sell on the rise but not above 7992 with a stop loss of above 8055. The possible sell points could be at 7915/7930-50/7992.The ultimate stop loss is 8055. But it is advised to use self defined stop losses with the help of resistance points mentioned above  for the suggested sell points trade to manage it in a better way.

2. Sell below 7822 with a stop loss of above 7855 for a target of 7772/7723/7714.

Remark: - In view of today’s breakdown long trade is ruled out for now, instead short call can be tried on the rise or below 7822.

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.