CNX-NIFTY- A TECHNICAL VIEW FOR-9-3-2016

CNX-NIFTY

Closed at 7485.30 on 8-3-2016 (Open-7486.40/High-7527.15/Low-7442.15)

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 on a flat note today and then moved up but could not cross its critical point of 7539.50 valid for the year 2016 and thereafter went down to correct  but at the end of the day closed absolutely flat ,so the desired down correction on closing basis is still awaited. But it has given some indication today that the down correction may set in soon as it has violated its previous days low today for the first time in last five days. But since its short term technical setup looks o.k. it may take few more days before correction really happens, but the vulnerability for down correction is pretty high as of now. It is therefore advised to be extra vigilant in existing long trade and it would be better and safe to try fresh long call only if it moves and sustain above 7539.50 mark or else in down correction at appropriate points but not below 7295. Moving up it would face resistance at 7512.50/7539.50/7551/7600.45; similarly going down it will find support at 7417/7380/7350/7295/7252.40/7241.50.       

For 9-3-2016 it would be safe to try long call only if it moves and sustain above 7539.50 but aggressive traders if they wish to can try long call above 7506 with a stop loss of below 7475 for a target of 7513/7539.50/7551/7600—7625. It could be a risky trade mind you. Looking at its vulnerability for down correction ,if it fails to move above 7506 for quite some time then short call can also be tried with a stop loss of above 7550.     

  Remark:- It is suggested to try fresh long call only if it moves and sustain above 7539.50 level . It looks worthwhile here to try short call if price movement supports as mentioned 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.