CNX-NIFTY-A TECHNICAL VIEW—17-3-2016

CNX-NIFTY

Closed at 7498.75 on 15-3-2016 (Open-7457.05/High-7508/Low-7405.15)

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

It opened on a flat to negative note and went down further but in last hour of trade it staged a smart recovery and ended the day near the high of the day. Despite strong up move today it still seems to be sell on the rise market till it moves and sustain above 7539.50. It is important to mention here that now it is moving within its critical range of 7539.50---7295(see my earlier post), furthermore it moved above the upper band of the critical range i.e. 7539.50 four times in last five days but could not close above it, so until and unless it closes above 7539.50 one should be extremely cautious and careful in the long trade. It is therefore suggested that long call should only be tried above 7539.50, but aggressive day traders can try it above 7513 also. Please note that long call should be avoided if it moves and sustain below 7450 and short call can be tried below this mark with proper stop losses. Moving up it will face resistance at 7539.50/7551/7565/7600.45/7667/7678/7691.20 and going down it will find support at 7450/7424/7405/7380/7350.

For 17-3-2016 long call should be tried if it moves and sustain above 7539.50 but aggressive day traders can try it above 7513 with a stop loss of below 7450. Since it has made lower bottom on the line chart therefore sell call can be tried if it maintains below 7450 with a stop loss of above 7490 for a target of 7405/7380/7350/7308/7295.      

Remark: - In view of last hour robust recovery aggressive day traders can try long call also above 7513 but it would be safe to try long call above 7539.50 only. Short call can be attempted only if it moves below 7450.

 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.