CNX-NIFTY
Closed at 7747 on 3-5-2016 (Open-7824.80/High-7890.25/Low-7735.15)
Support: - 7723.85/7714/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
Resistance: - 7772/7777.30/7822.70/7842/7850/7938.45//7946.35/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.
It opened on a
firm note then after sometime moved up sharply and made a high of 7890.25 for
the day, but could not sustain for long at the upper level and plunged down to
hit a low of 7735.15 and closed near the low of the day. It is showing gross
weakness as it has already broken short term rising trend line, making lower
top & bottom and running below its all short term moving averages and
breaking its long term moving average layer every day (see my post for
3-4-2016) and the last such average is being at 7630(it changes every day). Therefore
in all probability it is likely to go down further from here, however in
between short up move cannot be ruled out. It is therefore definitely a sell on
the rise market now till it closes above 7849.80. Moving down it will find
support from its long term moving averages at 7728/7680/7630(it changes every
day) and from its Fibonacci retracement points at 7698/7629. It may stage a relief rally from any of these points, so be
vigilant. Long trade should be avoided
till it gives visible indication of correction completion. Please note that It
has a strong bed of support in the range of 7728—7714, so it may take a
breather here before falling further, so be watchful. The bias is down for sure
as of now.
Please note that the range for the
on-going week is between 7992—7849.80---7788.70. Since it is has broken the
range downside therefore long trade is ruled out and short call can be safely
tried below 7788.70. The short range for the day is 7714----7788.70---7823, so
structure your trade keeping this range in mind.
TRADING OPTION FOR-4-5-2016
1. Sell on the rise but not above 7850
with a stop loss of above 7900. The possible sell point could be at 7788/7820/7832/7850
2. Sell below 7714 with a stop loss of
above 7750 for a target of 7680/7663/7630/7587.
Remark: - It
is surely a 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.