CNX-NIFTY-A TECHNICAL VIEW—6-4-2016

CNX-NIFTY

Closed at 7603.20 on 5-4-2016 (Open-7736.30/High-7736.30/Low-7588.65)

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

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

I had mentioned in my last two post (see my post for 1-4-16 & 4-4-16) that it may rise from here but the up journey may not be smooth and today it corrected sharply and closed with a loss of 155.60 points. Although it is still holding its recent bottom of 7582.25 on the bar chart and its one of the most critical point of 7539.50 for the year 2016 but the way it corrected today gives an indication that it may go down further from here and certain technical indicators also corroborates it that the important level of 7539.50 may also be taken out in coming days. It is important to mention here that sustained break below 7539.50 may begin a fresh down move which may be kept in mind. In view of today’s sharp down correction it is suggested to watch the market for at least 1-2 days before initiating fresh long calls. However those who wish to can try long call as long as it holds 7539.50 mark but it is not suggested.  

For 6-4-2016 avoid long call now instead short call can be tried below 7582 with a stop loss of above 7650 and add on position if moves below 7539.50 with a stop loss of above 7585. Please see support points for targets.      

Remark: - In view of today’s sharp down correction long call should be avoided for at least 1-2 days. 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.