CNX-NIFTY- A TECHNICAL VIEW FOR-14-3-2016

CNX-NIFTY

Closed at 7510.20 on 11-3-2016 (Open-7484.85/High-7543.95/Low-7460.60)

Support:-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:-7512.55/7539.50/ 7551.05/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/

It opened flat but made both ways movement during the day and at the end of the day closed with a gain of 25.05 points. It is still looking good on the daily chart but weekly and monthly charts are still weak. The range for the week starting from 14-3-2016 is between 7547.10----7424.30, the broad range is between 7539.50---7295 on the bar chart and between 7531.80---7485 on the line chart (closing basis) which may be kept in mind. Please note that breakout from the range will decide the direction for the coming week and so on. So plan your trade keeping the above range in mind. Since 7539.50 is one of its most critical point for the year 2016 and it did cross this level in last two days but could not sustain, it is therefore suggested that fresh long call should only be tried if it moves and sustain above 7539.50 but exercise caution if it closes below 7485 because then it may signal the end of this on-going rally if it does not cross 7539.50mark again shortly. It is important to mention here that as long as it holds 7295 it is o.k. because sustained break below this level will trigger fresh and severe fall which may please be noted and looking at the weekly and monthly chart it seems very likely to happen  in coming weeks/months, so be alert in long trades. Moving up it would face resistance at 7512.50/7539.50/7551/7600.45; similarly going down it will find support at 7422/7380/7350/7295/7252.40/7241.50.       

 For 14-3-2016 long call can only be tried if it moves and sustain above 7539.50 with a stop loss of below 7480 for a target of 7551/7600—7616/7667/7678/7691.50. Short call can also be tried if it maintains below 7480 for some time then with a stop loss of above 7513 for a target of 7442/7422/7406/7380/7350.    

  Remark:-It is moving now in its make or break range which is between 7539.50—7295, so till the either side breakout happens, trade keeping the said range in mind. The bias is up on the daily chart as of now but long trade should be handled cautiously, as it had vertical rise in last few days without reasonable down correction.

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.