CNX-NIFTY--A TECHNICAL VIEW--3-3-2016

CNX-NIFTY

Closed at 7368.85 on 2-3-2016 (Open-7321.70/High-7380.35/Low-7308.15)

Support:-7350.30/7295/7252.40/7241.50/7208.65/7204.65/7118.85/6960.65/ /6869/6825/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:-7422/7512.55/7539.50/ 7551.05/7563.55/7589.50/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/

 It opened up with a big up gap and maintained and then steadily moved up and ended the day near the high of the day with a gain of 146.55 points. It continued yesterdays rising momentum tremendously today and convincingly crossed the bear market territory threshold point of 7295, but it has to be seen whether it could sustain above this mark or not in next 3-4 days. Furthermore  the gap it created today it still there and if it makes an attempt to fill this gap in next 2-3 days time then it could come down to 7235 level.  Although it has exhibited extra ordinary strength in last two days trade but it is still way below its long term moving averages not only on the daily chart but below some of it on the weekly chart also and other technical parameters are also not that great as of now, so it seem that the on-going rally is a powerful relief rally only. Therefore be alert and watchful in next 3-4 days, but since it has crossed the bear market threshold point of 7295 long call can be tried now or on the dip but not below 7295 with caution, similarly if it breaks and sustain below this mark try short call also. Moving up it will face resistance at 7378---7422/7487.15/7512.55/7539.50 /7600.45.It is important to mention here that it will gain some strength if it moves and sustain above 7539.50. Going down it will find support at 7295/7252.40/7241.50/7204/ 7121/7008/6960.

For 3-3-2016 long call can be tried now or on dip but not below 7295 with a stop loss of below 7230 for a target of 7378—7422/7487/7512.55/. Similarly short call can be tried if it moves below 7295 and sustain with a stop loss of above 7325 for a target of 7235/7204/7134. In view of more than 380(closing basis) points rise in last two days long call should be handled cautiously.   

Remark:-Since it moved above the bear market threshold point of 7295 long call can be tried till it maintains above it, similarly short call can be tried if it maintains below it with suggested stop losses. 

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.