CNX-NIFTY-A TECHNICAL VIEW-10-2-2016

CNX-NIFTY

Closed at 7298.20 on 9-2-2016(Open-7303.95/High-7323.45/Low-7275.15)

Support:- 7295/7241.50/7118.45/6868.85/6638.55.

Resistance:-7350.30/7422/7539.50/ 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.

It opened with a down gap today breaking decisively the bottom of 7361.80 and 7350.30 on the line and the bar chart respectively. It also broke the threshold level of 7295 for entering into the bear market territory intra -day but it respected its recent bottom of 7241.50 on the bar chart made on 20-1-2016 and at the end of the day closed just above the threshold mark of 7295 with a loss of 89.04 points. Today’s move exhibited tremendous weakness  and now it is a matter of time only before the bottom of  7241.50 is taken out and it heads for much lower levels in coming days/weeks and months. Moving down it will find support at 7241.50/7197/7118-7095/6868. However since it has closed just above the threshold mark of 7295 and opened with a down gap therefore if it makes an attempt to fill the gap in 2-3 days time it could come to 7364 or may be around 7395 level but any rise should be used for selling. The long call should only be attempted if it moves and sustain above 7539.50 or else at lower levels when it show some visible strength.  

For10-2-2016 In view of the above fresh short call can safely be tried below 7275 and then below 7241 for sure with a stop loss of above 7310 for a target of 7197 and then 7122 or sell on the rise but not above 7512 with a stop loss of above 7540. Moving up the possible sell point could be at 7364/7395/7440.It is suggested but not recommended that those who want to take advantage of the in between short relief rally can try long call above 7295 with a stop loss of below 7235; it could be a risky trade mind you.

Remark:-The long term trend is still down. Since it is knocking at the door of bear market territory ,therefore long call is ruled out  for now and sell on the rise strategy should be followed  and long call should only be attempted if it moves and sustain above 7539.50 till then try short call  as suggested above or below 7241 for sure.

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.