CNX-NIFTY-A TECHNICAL VIEW—4-4-2016

CNX-NIFTY

Closed at 7713.05 on 1-4-2016 (Open-7718.05/High-7740.15/Low-7666.10)

Support:-7691/7678/7667/7582.25/7539.50/7422/7405/7350.30/7295/7252.

Resistance:-7738.40/7777.60/7840/7863/7938.45/7946.35/7973/7980.

It opened on a negative note and then tried to move up but as expected faced resistance from its long term moving averages (see my post for 1-1-16) and corrected sharply intra-day but closed relatively with a small loss of 25.35 points. Please note that as long as it holds 7597 level on the closing basis and finally 7539.50 for the year 2016 it still seems o.k. for moving up. The technical setup looks good but I once again repeat that the up journey may not be smooth from here as it will face resistance from its long term moving average which is in the range of 7745—7775--7845---7893---7942(it changes every day) and from its most important resistance points at 7938.45 & 7946.35 for the year 2016, if it move above this and sustain then further good up move can be expected. Similarly it will find good support moving down from its long term moving average at 7694 & 7645(it changes every day),then from its recent bottom of 7582 and finally from its one of the most critical point of 7539.50 for the year 2016 but please note that sustained break below 7539.50 may begin fresh down move. The long call can be tried on dip but not below 7645 and avoid below 7580 for sure. It would be safe try long call above 7740. Long call should be handled with caution in view of the tough resistance range ahead.

For 4-4-2016 long call can be tried if it sustains above 7740 with a stop loss of below 7690 and fresh long position can be added if it sustains above 7780 with a stop loss of below 7738 for added position or try long call on dip near 7645 with a stop loss of below 7580. Please see resistance points for targets.      

Remark: - Long call can be tried above 7740 or on dip near 7645 but with extreme caution.  

  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.