CNX-NIFTY
Closed at 7870.15 on 18-5-2016 (Open-7846.75.65/High-7882.05/Low-7810.75)
Support: -7849.80/7822.70/ 7810/7772/7723.85/7714/7678.35/7691.20/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
Resistance: - 7890.25/7938.45/7940.10/7946.35/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.
After two days of
volatile movement on 17th & 18th the on-going up trend still seems to
be in place as long as it holds 7630 (it changes every day) and finally 7539.50
levels on the closing basis (see my post for 16-5-2016).Please note that
sustained close below 7772 will be the first signal of the end of this up move
and break and sustained close below 7678 will be a potential indication of the
end of this up move.
It is
making lower top and bottom on the line chart, so it is in the correction mode
now and it may move down further from here, furthermore it could not cross its
recent top of 7992 in last nine trading sessions which indicate some weakness
in it. But since the overall technical setup looks o.k. now therefore long call
can be attempted on decline in the strong support range of 7733—7678 but not
below 7678 or long call can be attempted
if it moves and maintains above 7901. Please note that moving up it will face
huge resistance at 7950 /8000/8055/8065/8091 and it will regain the up momentum
only if it gives sustained close above 8000 which may please be noted. It is
range bound now therefore both long and short side trade can be attempted
depending on the daily price movement but trade should be handled with extreme caution.
TRADING OPTION FOR-19-5-2016
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. Long call can be tried above if it
maintains above 7901 with a stop loss of below 7860.
3. Can try sell call if it sustains below 7870
with a stop loss of above 7920 for a target for 7810/7772/7753/7733/7714/7678.
Remark: - Since it is range bound now, one can try both side
trades depending on the price movement. 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.
A trader with less risk bearing capability can invest using option contract with minimum risk being the premium amount paid. To learn accurate trading tips by experts of stock market contact epic research.
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