CNX-NIFTY---( A TECHNICAL OVERVIEW )3-4-2015

CNX NIFTY

CLOSED AT 8586.25 ON 1-4-2015

SUPPORT: -8470/ 8445 / 8364 / 8282.70 / 8272.80 / 8269.15 / 8180 / 8160 / 8147.95 / 8065.45.

 RESISTANCE: - 8626.95 / 8669.45 / 8788.70

Nifty after continuous fall which started on 18-3-2015 made a bottom at 8269.15 on the 8^th day of the fall ie on 27-3-2015 and thereafter moving up .It seems that the on- going up move is just a pull- back rally after the severe fall from 9119.20 level and it may last for another 2-3 days and this rally may get exhausted around the possible points of 8626.95 / 8695 / 8795. I would like to mention here that nifty has critical support in the range of 8450-8400 for long term up trend to remain intact (these figures changes every day with price movement) and going up critical and very important resistance at 8626.95 and if it has to show strength and resume the up momentum again then it has to close reasonably above this mark and sustain it too.

In last three days trade it has moved above some of its short term moving averages which are in the range of 8630—8490(it changes every day) for 6-4-2015,so aggressive trader can go for  long call now or on decline with a stop loss of below  8490 or 8450 or can go long above 8630 with a stop loss of below 8550.Since it is a pull -back rally  I would not like to take chance of going long now, I would only try long call if it closes reasonably above 8626.95 mark and sustain if for 3-4 days ,  instead I would prefer to try sell call on the rise at appropriate levels with an adequate stop loss. Technically I feel that it is still not out of woods and down slide will resume once this rally is exhausted. Therefore long trade should be handled with extreme caution and care.

 Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARK:-Long term up trend still intact. Looking in totality my bias is on the downside, therefore long trade is a avoid for me now, I would try long call only if it closes above 8626.95 and sustain it for 3-4 day.

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.