CNX-NIFTY-A TECHNICAL VIEW—16-3-2016

CNX-NIFTY

Closed at 7460.60 on 15-3-2016 (Open-7535.85/High-7545.20/Low-7452.80)

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 on a flat to negative note and crossed once again one of its most critical point of 7539.50 on the fourth consecutive day but could not sustain even for a minute and thereafter steadily moved down and closed near the low of the day and most importantly closed below 7480 mark (see my post for 15-3-16). Today’s move  is showing   sign of some weakness but it is still within its major range of 7539.50---7295(see my post for 14-3-16) so going down from here it will find good support at 7424—7417/ 7380/7350/7308/7295/7235. It may bounce back from any of these points but if it breaks the range of 7424-7417 and sustain then it could go down further. Furthermore it has broken its bottom of 7486.15 & 7485.30 on the line chart therefore technically it will be a sell on the rise market now till it moves and close above 7539.50 level or one can sell below 7417. Similarly contrarian trader  who wish to try long call can try near 7424 and then, near 7295 but not below this mark for sure.

 For 16-3-2016 in view of today’s move long call should be avoided till it moves and sustain above 7539.50 but aggressive traders can try  near 7424 with a stop loss of below 7400 and then near 7308—7295 with a stop loss of below 7230,it could be a risky trade mind you. Since it has broken the bottom on the line chart therefore it is sell on the rise market now till it moves and closes above 7539.50 and sustain or sell if it maintains below 7450 with a stop loss of above 7490 and add on short position if it moves below 7417 with a stop loss of above 7450 for added position for a target of 7380/7350/7308.     

Remark:- In view of today’s down move and breaking of bottoms on the line chart sell on the rise strategy should be followed till it moves above 7539.50 and sustain. Take your trading call as suggested above but long call should only be tried either above 7539.50 or near 7295.

 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.