CNX-NIFTY-A TECHNICAL VIEW FOR—11-4-2016

CNX-NIFTY

Closed at 7555.20 on 8-4-2016 (Open-7542.35/High-7569.35/Low-7526.70)

Support: - 7539.50/7526.70/7422/7405/7350.30/7295/7252.

Resistance: - 7582.25/7667/7678/7691/7749.40/7777.60/7840/7863/7938.45/7946.35/7973/7980.

It moved in a very short range of 43 points today which is indicative of a big move ahead on the either side may be in a day or two and most likely on the downside as it has closed near the low of the week. It is in down move now so even if it moves up for a while don’t try to take advantage of any up move because it may trap you at higher levels.  Furthermore it is well below its long term moving averages, few technical indicators are also pointing towards a downside move, it is making lower top and bottom on the line chart and it is also running below its short term moving averages and certain short term moving averages has given negative crossover also which is not a good sign, therefore overall technical setup indicates continuation of the down move but I once again repeat that in between short up move could be there. In view of the above long call should be completely avoided till it closes above 7650 and sustain, therefore sell on the rise strategy should be followed till then. However since it is holding on to one of its most crucial points of 7539.50 for the year 2016, therefore it would be safe to try short call if it sustains below 7539.50. The contrarian trader can try long call if they wish to as long as it holds 7539.50 level with a stop loss of below 7525, please note that it is suggested and not recommended because the bias is on the downside.

Please note that moving down it will find good support in the range of  7429—7405(it is likely to hit this range) and sustained break below this range can drag it down to 7295 level  which is a long term bear market threshold point. It is needless to mention here that sustained break below 7295 mark could trigger fresh fall and it may seek much lower levels then. So watch out.     

For 11-4-2016 short call can be tried on the rise  at proper points but not above 7650 with an ultimate stop loss of above 7700 or  sell below 7539.50 with a stop loss of above 7590 and add on short position if it moves below 7526 and sustain for a target of 7490/7460/7429/7405. Please note that it would be safe to try short call below 7539.50. Please use self defined stop losses for on the rise sell trade with help of resistance point mentioned above to manage your trade better.

Remark: - At present it is sell on rise market till it moves above 7650 and sustain, therefore long call should be avoided now and short 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.