CNX-NIFTY
Closed at 6976.35 on 11-2-2016(Open-7203.60/High-7208.65/Low-6959.95)
Support:-6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.
Resistance:-7118.45/ 7241.50/7295/7350.30/7422/7539.50/ 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 on a flat to negative note
but did not open with a down gap and thereafter went down steadily during the
day, but in late hours of trade it plunged down sharply breaking the
physiological level of 7000 and closed below it and near the low of the day
with a whopping loss of 239.35 points. It was a sheer panic today therefore it
seems that a short bottom may be in sight in a day or two or may be tomorrow itself
around the possible points of 6825 or 6685—6600. It is important to mention
here that break below 6580 can trigger fresh fall which can drag it down to
further lower levels again. In view of the above if it panics tomorrow and
comes near the aforesaid range it is suggested to avoid fresh short call and
square existing one and can try long call near the range.
For 12-2-2016 can sell below 6959 with
a stop loss of above 7010 for a target of 6868/6825/6685&6600. It is
suggested to exit short trades around the said levels and can try long call near
the said range with a stop loss of below 6790 and 6560 respectively.
Remark:-It is in long
term bear trend now. Today’s panic indicates that a short bottom may be in
sight therefore it is suggested to avoid fresh short trade around the range of
6825-6685-6600 and existing short call should be squared off and long call can
be tried near the range with the above
mentioned stop losses.
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.
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Thank you for sharing your views.