CNX-NIFTY-A TECHNICAL VIEW—18-3-2016

CNX-NIFTY

Closed at 7512.55 on 15-3-2016 (Open-7557.40/High-7585.30/Low-7479.40)

Support:-7512.55/7422/7350.30/7295/7252.40/7241.50/7208.65/7204.65/7118.85/6960.65/ /6869/6825/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:-7539.50/ 7551.05/7585.30/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/

It opened with a huge up gap and went up further and remained above its most critical point of 7539.50 for the year 2016 almost throughout the day, but in last 45 minutes of trade it plunged down and broke the aforesaid level convincingly and went on to break the   previous day’s close and ended near the low of the day and that too in a negative territory in real time but eventually after adjustment managed to close with a gain of 13.79 points. Please note in last six trading days it crossed 7539.50 level for five days but could not close above it ,which shows gross weakness in it, furthermore since it has made lower bottom on the line chart ,it is still sell on the rise market till it closes above 7539.50 mark (see my post for 17-3-2016). It is therefore suggested that long call can safely be tried only after it closes above 7539.50 levels because it failed to close above this mark in last five attempts. 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 7539.50/7551/7585/7600.45/7667/7678/7691.20 and going down it will find support at 7480/7450/7424/7405/7380/7350.

For 18-3-2016 long call should only be tried if it moves and sustain above 7539.50 with a stop loss of below 7475. 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 7513 for a target of 7405/7380/7350/7308/7295. Aggressive day traders can initiate sell call if it maintains below 7475 for some time with a stop loss of above 7513 and add on position below 7450.      

Remark: - In view of its five failed attempts in last six days to close above one of its most critical point of 7539.50, it would be better and safe that long call should only be tried once it closes above this mark. Sell call can be tried 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.