CNX-NIFTY-A TECHNICAL VIEW--16-2-2016

CNX-NIFTY

Closed at 7162.95 on 15-2-2016(Open-7057.35/High-7182.80/Low-7056.80)

Support:-7118.45/ 7057.35/7021/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:-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.

It opened with an up gap and well above today buying point of 7021(see my post for 15-2-16) thereafter steadily moved up and closed near the high of the day.

Please note that the  gap it created today still exist and if it makes an attempt to fill this gap in next 2-3 days time then it could come down to 7034.80 level.

Today’s moves showed good strength  after the last few days of huge fall, therefore it seems that this up move  may extend  for few more days provided it holds 7057 and 7021 levels on the closing basis. Moving up it would face resistance at 7191/7241-7267/7295 & 7363--7400 and possibly the on-going up move can exhaust at any of these points so be watchful and alert. Similarly support for it exists at 7118/7057/7021/6980 and sustained break below 7021 will signal the end of this rally. Please note that it will gain some strength if it moves above the bear market territory threshold point of 7295 and sustain. Therefore short call should be avoided above this mark

It is also important to mention here that the on-going up move is a pullback rally and can fizzle out any time, therefore for safe trader it is suggested to avoid long call  but aggressive day trader can still try but it  should be handled with utmost caution and care. 

For 16-2-2016 since it gave good rise today and maintained at higher levels after short up move on 12-2-16, therefore it seems that this up move may continue for few more days, so long call can be tried above 7191 with a stop loss of below7150 or try on dip near 7114 then near 7057-7021 with a stop loss of below 7095 & 6980 respectively. Since the trend is down and it is a pullback rally only as of now, therefore an aggressive and contrarian trader can try short call also near 7241—7251 and the near 7295 but not above this with a stop loss of above 7320.    

 Remark:-It is in long term bear trend now. But today’s up move was robust and it may continue for few days, so long call can be tried as suggested above. Similarly the on-going up move is a relief rally only therefore short call can also be tried at suggested points.

 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.