CNX-NIFTY-A TECHNICAL VIEW FOR—12-4-2016

CNX-NIFTY

Closed at 7671.40 on 11-4-2016 (Open-7577.80/High-7678.80/Low-7516.85)

Support: - 7667/7582.25/7539.50/7526.70/7422/7405/7350.30/7295/7252.

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

As expected it gave a big move but unexpectedly on the upside whereas the overall technical setup was indicating continuation of the down move. It did break its critical point of 7539.50 for the year 2016 intra-day and went down further but all of a sudden made a U turn and closed near the high of the day with a gain of 116.20 points. Please note that this kind of volatility is not good for the market and it has to be seen whether it will sustains today’s up move or not. But since it has closed above 7650(see my post for 11-4-2016), moved above its short term moving averages and in the process of making a higher top on the line chart therefore short call should be avoided till it holds 7582 level and long call can be tried if it sustains above 7630(it changes every day) but not below it. In view of the extreme volatility it is advised to handle your trade very cautiously because it may reverse the move also.       

For 12-4-2016 watch the market for sometime before initiating trade avoid short call now, long call can be tried if it maintains above 7630 but not below it with a stop loss of below 7580 or try long call above 7680 with a stop loss of below 7630.Please see resistance points mentioned above  for targets.  

Remark: - Today’s robust up move has changed the dynamics for now; therefore short call should be avoided till it holds 7582 and long call can be tried as suggested above. In view of the huge volatility trade should be handled with extreme care as this volatility can trap you unaware. 

 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.