CNX-NIFTY-A TECHNICAL VIEW FOR—12-5-2016

CNX-NIFTY

Closed at 7845.85 on 11-5-2016 (Open-7804.65/High-7893.10/Low-7780.90)

Support: - 7822.70/7723.85/7714/7678.35/7691.20/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: - 7249.80/7890.25/7938.45//7946.35/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.

                      

It opened with a huge down gap and went down further but recovered sharply and at one point of time came into positive territory but finally closed with a loss of 38.94 points. Even after this wild swing technical setup is o.k. and as long as it holds 7627(it changes every day) level this up move may be in place in broader sense, however in between short down move could be there, but close below 7678 could be an indication of the end of this rally.  Please note that it will gather good up momentum it if it gives sustained close above its last long term moving average which is at 7875 (it changes every day) &its recent previous top of 7890.25 on the bar chart. Since it’s short and intermediate trend is up now so it is suggested to adopt buy on dip strategy at proper points. Avoid sell trade for sure.

                                 TRADING OPTION FOR-12-5-2016

1. Long trade can be tried now or on the dip but not below 7830 with a stop loss of below 7780 or if it moves and maintains above 7900 with a stop loss of below 7840. It would be relatively safe to try long call above 7900.

 Remark: - Long call can be tried as suggested above but short call should be avoided now. Please initiate your trade after watching the market for at least 30 minutes.   

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.