CNX-NIFTY
Closed at 7814.90 on 13-5-2016 (Open-7871.45.65/High-7916.05/Low-7849.65)
Support: - 7780.90/7723.85/7714/7678.35/7691.20/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
Resistance: - 7822.70/7849.80/7890.25/7938.45//7946.35/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.
It had a down day today
and it closed with a loss of 85.50 points.
Please note that as long as it holds 7628(it changes every day) and
finally 7539.50 levels the up-trend may be in place but in between down
correction may happen as it is happening now. It has established a lower top of
7916.05 on the bar chart recently and broken the recent bottom of 7848.85 on
the line chart, so it is definitely in correction mode now and may move down
further from here, before it resumes the up move again. Going down it will find
good support at 7780/7753/7733/7714/7678/7628 it may bounce back from any
of these points, but break below 7733 may take it down to 7678 and break and
close below 7678 will be a potential indication of the end of this up move. The
overall bias is slightly tilted towards upside as of now, so long call can be
attempted in down move in the range of 7733—7678, but not below 7678. Since it
is correction mode now one can take advantage of the expected fall also
therefore sell call can be tried on the rise but not above 7900 or can sell
below 7804, but one should be quick and swift in handling short trade because
overall technical setup is still not that bad as of now for up move to continue
except for its recent lower top formation of 7916.05 on the bar chart which is
only the concerning thing. Please note that it will gain strength above 7917
and regain up momentum only if it moves and sustains above 7992 else danger of
this up move fizzling out will always be there which may be kept in mind.
TRADING OPTION FOR-16-5-2016
1. Long trade can be attempted in the
range of 7733—7678 but not below 7678 with a stop loss of below 7620. It could
be a risky trade but worth trying, so handle it very cautiously.
2. Since it is correction mode short call
can be tried on the rise but not above 7900 with a stop loss of above 7950.
3.
Sell below 7804 with a stop loss of above 7870 for a target for 7780/7753/7733/7714/7678.
Remark: - Both side trades can be tried depending on the price
movement. So take your trading call as suggested above. 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.
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