CNX-NIFTY- A TECHNICAL VIEW FOR-4-3-2016

CNX-NIFTY

Closed at 7475.60 on 3-3-2016 (Open-7429.55/High-7483.95/Low-7406.05)

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/ 7551.05/7563.55/7589.50/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/

It opened yet again with an up gap today and made no effort to fill the gap during the day and closed near the high of the day with a gain of 106.75 points.  No doubt it  exhibited tremendous strength in last three days, but the concerning thing is that it had two unfilled up gap in a row and if it makes an attempt to fill these gaps in coming 2-3 days time then it could sharply come down to the level of 7380 and then 7235. Furthermore if it opens with an up gap on-4-3-2016 i.e. above 7484 mark then it is very much likely that it can give sharp down correction the very same day. Therefore if it opens as perceived and move up further please avoid fresh long trade for sure and book profit in existing long trades if not completely at least part profit booking for sure, even otherwise book some profit here and try sell call on the rise but not above 7560.Please note that it had vertical rise in last three days and that too with two gaps in a row, so it looks highly vulnerable for a down correction, therefore sell call is suggested. The short term technical setup looks o.k. so fresh long call can be tried but not now and only on down correction and at appropriate points but not below 7295. Moving up it will face resistance at 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 7380/7350/7295/7252.40/7241.50/7204/ 7121/7008/6960.

For 4-3-2016 if it opens above 7484  and move further avoid fresh long call and book profit on existing long call  if not completely at least part profit for sure ,even otherwise also book profit. If it behaves as mentioned herein-above try sell call on the rise but not above 7560 with a stop loss of above 7625.   

  Remark:-It is suggested to avoid fresh long call today and book profit on existing long trades if not completely at least part profit booking for sure and if it opens the way as perceived then it would be worth trying sell call as suggested above.

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.