CNX-NIFTY
Closed at 7805.90 on 2-5-2016 (Open-7822.70/High-7829.80/Low-7777.30)
Support: - 7777.30/7772/7723.85/7714/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
Resistance: - 7822.70/7842/7850/7938.45//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 43.89 points.It is making lower
top and bottom on the line chart and broken bottom on the bar chart, it has
broken its short term rising trend line also which was at 7820 for today and
would be at 7845 for 3-5-2016 and it is running below its short term moving
averages and few long term moving averages also. Overall it is showing weakness
and it is correcting now and looking at the present technical setup it seems
that the on-going correction may deepen further, therefore it is definitely a
sell on the rise market till it closes above its recent top of 7849.80. So be alert
in short trade if it closes above 7849.80. But please note that it will resume
the up momentum only if it moves and sustain above its long term moving average
upper band which is placed at 7898 now (it changes every day) and then finally
if it crosses the recent top of 7992. Moving down it will find support from its
long term moving averages at 7777/7728/7680/7630(it changes every day) and from
its Fibonacci retracement points at 7754.42/7698/7629. It may stage a relief rally from any of these points, so
watch out. Long trade should be avoided
till it gives visible indication of correction completion.
Please note that the range for the
on-going week is between 7992—7849.80---7788.70. It did break the lower band of
the range today but managed to close above it. Please note that if it breaks
the 7788.70 level again and sustain then long trade should be avoided for the
entire week, instead short call should be tried for sure.
TRADING OPTION FOR-3-5-2016
1. Sell on the rise but not above 7850
with a stop loss of above 7900.
2. Sell below 7777 with a stop loss of
above 7830 for a target of 7777/7772/7723/7714.
Remark: - It
seems that it is sell on the rise market now, therefore long call should be
avoided. Instead short call can be tried as suggested above. Please initiate
your trade after watching the market for at least 30-45 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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Thank you for sharing your views.