CNX-NIFTY--A TECHNICAL VIEW--1-3-2016

CNX-NIFTY

Closed at 6987.05 on 29-2-2016 (Open-7050.45/High-7094.60/Low-6825.80)

Support:-6960.65/ /6869/6825/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:- 7021/7030/7118.85/7204.65/ 7241.50/ 7252.40/7295/7350.30/7422/7512.55/7539.50/ 7551.05/7563.55/7589.50/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/

 As expected it had huge volatility and wild swing of more than 265 points intra- day today but it closed the day on a weak note and with a loss of 42.70 points, volatility may still continue for some time. Today it broke the double bottom of 6960 which is also the lower band of the weekly range of 6960—7295 (see my post for 29-2-2016) but bounced back to close just above it, furthermore it also broke the bottom of 6869 it made on 12-2-2016 on the bar chart intra-day which is a bad sign. Technically it is already weak, but 6960 will act as a good support till it is taken out again. It is still sell on the rise market now  therefore fresh short trade can be initiated if it goes below 6960 or on the rise but not if it maintains above 7051 on 1-3-2016. The bias is on the downside now therefore it is suggested to avoid long trade completely till it moves above the bear market territory threshold point of 7295 and sustain.  Moving down it will find support at 6960/6869/6825/6775/6722-6710/6685/6638.55/6510/6432.70/6357.10/6338.50 where it could take a breather and bounce for a while as it did today from 6825 point or may give a relief rally from any of these points for a day or two before resuming down move again, so be alert and watchful. Please note that sustained break below 6338.50 can drag it down to unbelievable lower   levels.

For 1-3-2016 sell call can be tried on the rise but not above 7051 with a stop loss of above 7100 or below 6960 with a stop loss of above 7031 for the entire week starting from 29-2-2016 for a target of 6869/6825/6775/6720. Buying is ruled out for now.

 Remark:-It is in long term bear trend. Therefore it is suggested to try sell call as mentioned above and avoid long trade completely as of now. 

 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.