CNX-NIFTY-A TECHNICAL VIEW FOR—23-5-2016

CNX-NIFTY

Closed at 7749.20 on 20-5-2016 (Open-7792.20/High-781.40/Low-7735.75)

Support: - 7735.75/7723.85/7714.15/7691.20/7678.35/7667.25/7582.25/7551/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: - 7777.60/7822.70/7849.80/7890.25/7938.45//7946.35/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.

                      

It has ended the week with a loss and near the low of the week, which shows weakness. It is making lower top and bottom on the line chart and made lower top on the bar chart, furthermore it is running below its short term moving averages and some of its long term moving averages also which indicates that the corrective down move may continue further and if it fails to hold the recent bottom of 7678 on the bar chart then the on-going uptrend may end and a fresh down move may begin.

It has slightly weak technical setup at present and  it is in correction mode also, therefore short call can still be tried below 7735 but with extreme caution  because  it has very strong support in the range of 7723—7678—7630. Therefore short call if initiated should be exited within the mentioned range and long call can be tried preferably at the lower end of the range or stay neutral till it gives some visible indication of moving up. Once exited fresh short trade should only be tried if it moves and sustains below 7620(it changes every day). Similarly long trade if initiated should be exited below 7620.

It is important to mention here that break and sustained close below 7539.50 will trigger fresh and accelerated fall which may please be noted. Looking at certain technical parameters as of now it is likely to hit 7546 level in coming days so one should be very careful in attempting long trade in the above mentioned range.   

  

                     TRADING OPTION FOR-23-5-2016

1. Sell below 7735 with a stop loss of above 7780 for a target for 7714/7690/7678/7667/7630/7582/7539.50.

2. Long trade can be attempted near the lower end of the range 7733—7678---7630 with a strict stop loss of 7620. It could be a risky trade but worth trying, so handle it very cautiously.

 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.