CNX-NIFTY-A TECHNICAL VIEW—1-4-2016

CNX-NIFTY

Closed at 7738.40 on 31-3-2016 (Open-7727.65/High-7777.60/Low-7702)

Support:-7691/7678/7667/7582.25/7539.50/7422/7405/7350.30/7295/7252.

Resistance:-7840/7863/7938.45/7946.35/7973/7980.

After closing above 7539.50 level on 18-3-2016,( it was an important level see my earlier post) it is  steadily moving up and did not break the said level even in intra-day , it is showing good strength and it may give further rise from here but moving up it will face very stiff resistance from its long term moving average which is in the range of 7750—7847---7895---7944(it changes every day)and from its most important resistance points of 7938.45 & 7946.35 for the year 2016 ,if it move above this and sustain then further good  up move can be expected. Similarly it will find good support moving down from its long term moving average at 7696 & 7646(it changes every day),then from its recent bottom of 7582 and finally from its one of the most critical point of 7539.50 for the year 2016 but please note that sustained break below 7539.50 may begin fresh down move. The up journey from here may not be smooth but since technically it looks good now, therefore buy on dip strategy should be followed till it closes below 7597 and then breaks and sustain below 7539.50 level.   

For 1-4-2016 since it will be the first day of the new series therefore initiate trade after watching the market for some time.   Long call can be tried above 7728 with a stop loss of below 7690 and fresh long position can be added if it sustains above 7780 with a stop loss of below 7738 for added position. Please see resistance points for targets.      

Remark: - Long call can be tried as suggested above but with some caution as stiff resistance range is ahead.

  

 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.