CNX-NIFTY-A TECHNICAL VIEW FOR—27-5-2016

CNX-NIFTY

Closed at 8069.65 on 26-5-2016 (Open-7974.45/High-8083/Low-7948.50)

Support: - 8055/7992/7946.35/7938.45/7890/7849.80/7822.70/7777.60/7735.75/7723.85/7714.15/7691.20/7678.35/7667.25/7582.25/7551/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: -8091.80/8116/8160/8180.20/8195.65/8244/8336.

                      

It opened with an up gap for last two days and then vertically moved up, it tried to fill today’s gap but could not fill it completely therefore it still exist and yesterday’s gap is intact as it is, which is slightly concerning. Although it is exhibiting extra ordinary strength but please note that the gap up open and then unfilled gap and vertical rise is not good for a steady up move because technically vertical rise may have a  vertical fall too. In this context please also note that it has already left two gaps in a row and it opens with an up gap tomorrow say above 8083 and move further then it is very likely that it can witness good correction during the day even otherwise moving up from here may not be easy as it will face stiff resistance in the range of 8091—8120—8170—8195, so be very careful in the long trade around this range. It is therefore suggested to book at least part profit in the existing long trade around the aforesaid range and try fresh long call on decline but not below 7938.

                     TRADING OPTION FOR-27-5-2016

1.  It is suggested to try long trade on decline but not below 7938 with a stop loss of below 7890.

2. Aggressive day trader can try long call above 8083 with a stop loss of below 8050 for a target of 8120/8170/8195. It could be a risky trade.

3. Since it had a vertical rise, contrarian trader can try sell trade in the range of 8176—8195 with a stop loss of above 8220 for a correction only as of now.

 Remark: - In view of two days vertical rise part profit should be booked in existing long trade now and on the rise and fresh long call should only be attempted on decline. 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.