CNX-NIFTY-A TECHNICAL UPDATE-18-2-2016

CNX-NIFTY

Closed at 7108.45 on 17-2-2016(Open-7058.85.25/High-7123.70/Low-6960.65)

Support:- 7057.35/7048.25/7021/6980.95/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:-7118.45/ 7241.50/7295/7350.30/7422/7512.55/7539.50/ 7551.05/7563.55/7589.50/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

As expected it was a hugely volatile day and it had frantic movement for quite a long time in the day but in late hours of trade it moved up sharply and closed near the high of the day with a gain of 60.20 points. The volatility is expected to continue till the Budget Event is over therefore intra-day traders should be extremely careful in their trade position. Today it did break the point of 7021 and its recent bottom of 6976.35 on the line chart (see my post for 16-2-2016) intra-day but closed well above these points, in fact it made a higher bottom at 7048.25 on the line chart and a higher low of 6960.95 on the bar chart, so as long as it holds 7048.25 mark on the closing basis and 6960.95 intra- day basis, it could move sideways to up and if it closes above 7163 then it could move further up. Moving up it will face resistance at 7134/7182/7209/7241.50/7267/7295/7316/7360—7400. Please note that if it sustain today’s rise then this move may last for few days and could possibly exhaust at any of the above mentioned points.  

Please note that I would once again caution safe trader that not to take advantage of the in between up rallies in bear market, as these rallies are treacherous in nature and can trap you unaware at higher levels. However aggressive intra-day trader can try long call if they wish too at appropriate points.  The long trade can safely be attempted only if it comes out of the bear territory mark of 7295 and sustain.

    

For 18-2-2016 aggressive trader can try long call now or near but not below 7048 with a stop loss below 7010 for a target of 7134/7182/7209/7241.50/7267/7295. Similarly sell call can be tried if it maintains below 7040 with a stop loss of above 7070 for a target of 6960/6868/6825. I once again repeat that since it is pullback rally therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. Since it has made higher bottom on line chart and higher low on the bar chart intra-day trader can try long call as suggested above. But if price moves otherwise short call must be tried. Please note that taking advantage of the pullback rally could be risky, so be alert and watchful in long trade.

  

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.