CNX-NIFTY-A TECHNICAL VIEW—8-4-2016

CNX-NIFTY

Closed at 7546.45 on 7-4-2016 (Open-7630.40/High-7630.75/Low-7535.85)

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

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

It opened on a positive note but immediately slipped into red and as perceived(see my post for 7-4-16) broke its recent bottom of 7582.25 on the bar chart and also broke its crucial point of 7539.50 for the year 2016 intra-day but at the end managed to close just above it. However since the technical indicators points towards decisive break below 7539.50 levels, so it is a matter of time before it happens (see my post for 6 & 7th April-2016). Please note that sustained break below 7539.50 level on the closing basis will accelerate the fall which seems very likely in coming days/weeks as of now. Furthermore today’s fall almost confirms that the on-going up move which started from 29-2-2016 is over, therefore long call should be avoided now and sell on the rise strategy should be followed till it moves above 7645 and sustain.

For 8-4-2016 short call can be tried on the rise but not above 7645 or sell near 7582 or  sell below 7539.50 with a stop loss of above 7645 and 7590 respectively. 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 7645 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.