CNX-NIFTY-A TECHNICAL VIEW FOR—26-5-2016

CNX-NIFTY

Closed at 7934.90 on 25-5-2016 (Open-7811.80/High-7941.20/Low-7809.30)

Support: - 7890/7849.80/7822.70/7777.60/7735.75/7723.85/7714.15/7691.20/7678.35/7667.25/7582.25/7551/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: - /7938.45//7946.35/ 7972.45/7979.30/7992/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.

                      

As perceived it respected its strong support range of 7733-7678 (see my earlier post)and staged a huge pull back today, the pull back was expected from the above range but not of this intensity. Therefore it has to be seen how today rise shapes up in coming 3-4 days time because if it fails to keep the up momentum on it can have a similar kind of fall too, however as long as it holds 7715 on the closing basis the on-going up move may be in place but please be alert in existing long trade and avoid fresh long trade below 7820(it changes every day). Moving up it will face very stiff resistance in the range of 7938.45—7946.35---7972---7992—8055—8091—8118—8170—8187.

It is important to mention here that 7938.45 and 7946.35 are one of the most critical points for it for the year 2016 and sustained close above these points only could keep the up momentum going and now it is just below it. It is therefore suggested to structure your trade keeping the above points and   aforesaid resistance   range in mind.

                     TRADING OPTION FOR-26-5-2016

1. Long trade can be tried if it moves and sustain above 7947 with a stop loss of below 7900 for a target of 7972/7992/8038/8055/8065/8091/8118.

2. Long call can be tried on dip near 7840 but not below 7840 with a stop loss of below 7800 for a target of 7890/7938/7950/7972/7992.

3.Contrarian trader can attempt sell trade also near its previous top of 7992 but not above it only if it fails to cross it in first 2 hours of trade with a stop loss of above 8020. It could be a highly risky trade but worth trying. 

 Remark: - In view of today's robust up move, it seems that the down correction may be over. So long call can be tried as suggested above but with caution. Please initiate your trade after watching the market for some time.   

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.