CNX-NIFTY-A TECHNICAL VIEW—7-4-2016

CNX-NIFTY

Closed at 7614.35 on 6-4-2016 (Open-7636.05/High-7638.65/Low-7591.75)

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.

After yesterdays massive fall it moved in a relatively short range today, but failed to show strength although it is still holding on to 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 certain technical indicators indicates that it may fall further from here and the critical point of 7539.50 is most likely to be taken out in coming days. Here I once again repeat that sustained break below 7539.50 may accelerate the down move which may be kept in mind (see my post for 6-4-2016). In view of the above observation it is advised to avoid long call for now.  

The up rally which started from the bottom of 6825.80 on 29.2.2016 seems to be over after yesterdays fall, however if it is still on then it has to move above 7750 level in next 2-3 days time, chances of which are looking bleak at this point of time. It is therefore suggested to avoid long call till it moves and sustain above 7750. Instead short call can be tried on the rise at appropriate points but not above 7750 or sell below 7582. Please note that since its recent bottom of 7582.30 is still intact,so those who wish to try long call can try above 7582 with a stop loss of below 7510, but it could be a risky trade, therefore not recommended.   

For 7-4-2016 avoid long call now instead short call can be tried on the rise and the possible sell point could be at 7645/7675/7725  or sell below  7582 with a stop loss of above 7650 and add on position if it moves below 7539.50 with a stop loss of above 7590. Please use self defined stop losses for on the rise sell trade with help of resistance point mentioned above. See support points for down targets.      

Remark: - At present it is sell on rise market till it moves above 7750 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.