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

CNX-NIFTY

Closed at 7706.55 on 4-5-2016 (Open-7724.15/High-7749/Low-7697.25)

Support: - 7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: -7714/7723.85/ 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 had a down day today and it moved in a very short range but price weakness continues as it is making new low every day. Technically also it is on a very weak footing now and looking at overall technical setup further fall looks inevitable as of now. But it has huge support in the range of 7691---7629, furthermore it has retraced up to 61.8% level from the top & bottom of 7992 & 7516.85 and the point is at 7698, so before breaking this strong support range it may stage a short relief rally from here, but please note that in all probability it is likely to break the aforesaid range and may hit 7540 level in coming days/weeks, because certain technical parameters are indicating it as of now, so it is a matter of time before it happens. Therefore long trade should not be tried till it gives visible indication of correction completion. It is clearly a sell on the rise market now but not above 7825 on 5-5-2016 but one should be alert in short trade around the above mentioned support range. 

It is important to mention here that it has critical support point at 7539.50 for the year 2016 and sustained close below this mark may accelerate the fall.

                                     TRADING OPTION FOR-5-5-2016

1. Sell on the rise but not above 7825 with a stop loss of above 7850. The possible sell point could be at 7788/7825.

2.  Can try sell trade if sustain below 7691 for some time with a stop loss of above 7750 for a target of 7680/7663/7630/7587. It could be a risky trade.

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 and be alert in short trade in the range of 7691—7629 as it may stage a short relief rally from these level on5-5-2016. 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.