CNX-NIFTY
Closed at 7735.50 on 5-5-2016 (Open-7731/High-7777.55/Low-7706.85)
Support: - 7723.85/7714/7706.55/7691.20/7691/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
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.
As perceived it
took a breather today and gave an up move and closed with a gain of 28.95 points.
After the fall from 7992 level it gave two up moves on the closing basis the
first one was terribly weak and the move it gave today was also was feeble in
nature, furthermore the overall technical setup has turned weak and indicates
that further fall is in the offing as of now, so it seems that today’s up move is
not going to last long and may fizzle out tomorrow itself or may be a day
later. Therefore long call should be completely avoided for now instead sell on
rise strategy should be followed till it closes above 7850.
I once again
reiterate (see my post for 5-5-2016) that it has bed of supports in the range
of 7691—7628(it changes every day) therefore it seems slightly difficult to
break this range easily, but certain technical indicators as of now indicates
that this range may be taken out and it may hit 7540 level in coming
days/weeks. It is therefore suggested to handle your trade very carefully in
the said range. It is also important to mention here that sustained close below
7540 level may accelerate the fall. The bias is on the downside now.
TRADING OPTION FOR-6-5-2016
1. Sell on the rise but not above 7800
with a stop loss of above 7850.
2. Sell
if it moves and sustain below 7700 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 till
it closes above 7850; 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.
I found this post a very informative one. Valuable updates on CNX nifty can be accessed here. For best trading tips on stock market contact epic research.
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