CNX-NIFTY- A TECHNICAL VIEW FOR-10-3-2016

CNX-NIFTY

Closed at 7531.80 on 9-3-2016 (Open-7436.10/High-7539/Low-7424.30)

Support:-7512.55/7422/7350.30/7295/7252.40/7241.50/7208.65/7204.65/7118.85/6960.65/ /6869/6825/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

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

It opened with a small down gap and moved in a negative mode for a long time and then in later part of the 2^nd half staged a smart recovery and almost hit one of its most critical point of 7539.50 but could not cross it; however it closed near the high of the day, which is a good sign. Although it is showing good strength on the short term technical chart but the unabated rise tremendously increases the vulnerability for a down correction on the closing basis. However if it moves and sustain above 7539.50 then the on-going up move may last for few more days before the correction happens. Moving up it will face resistance at 7551.05/7600.45/7667/7678 and most importantly from the down trend line which is placed at 7616(it decreases every day) for 10-3-2016, if it gives up side break from the down trend line and sustain then the rise can extend further and the next important point of resistance then would be at 7691.50(it changes every day) and sustained close above this level may accelerate the up momentum. In view of the above fresh long call can be tried above 7539.50 but with extreme caution and care.     

For 10-3-2016 long call can be tried above 7539.50 with an alert point below 7505 and exit below 7480 for a target of 7551/7600—7616/7667/7678/7691.50. Long call should be handled with extreme caution. Although It is not giving any sign to try short call now but in view of straight rise and critical point of 7539.50 ahead it is suggested that if it fails to cross this level or after crossing it falls below it again and sustain for some time then short call can be tried with a stop loss of above 7570 for a target of 7485/7442/7424/7406/7380.    

  Remark:-With every rising day the vulnerability of down correction is increasing but looking at its strength long call can still be tried if it moves and sustain above 7539.50 level but with extreme caution.

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.