CNX-NIFTY
Closed at 7048.25 on 16-2-2016(Open-7201.25/High-7204.65/Low-7037.70)
Support:- 7021/6980.95/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.
Resistance:- 7057.35/7118.45/ 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.
It opened with an up gap today and
went little higher but could not hold on at that level and immediately drifted
down and thereafter steadily moved down during the day and closed below the low
of the previous day. It almost filled the yesterday’s gap also. It was a perfect copy book key down
reversal today, therefore in all probability the pullback move is over. But
it may witness huge volatility in coming days in light of the ensuing National Budget Event-2016, so there is
still weak hope of a short rise from here as long as it holds 7021 and its
recent bottom of 6976.35 on the line chart. Please note that it is already in
the bear market ,therefore, I once again reiterate that do not try long call to
take advantage of the in between bear market rallies. It is therefore suggested
to sell on the rise at appropriate points but not above 7241.50 and above 7295
for sure.
I cautioned not to try long call in
the pullback rally as these rallies can fizzle out abruptly also and this is
what has exactly happened today (see my post for 16-2-2016).Therefore it is
suggested to try long call only after if it shows sustained strength for some
time at lower levels or if it moves and sustain above 7295 and then above 7539.50
levels, chances of happening this does not seems bright as of now. In fact weekly and
monthly chart are so badly placed and as of now indicates that it may seek unbelievably
lower levels in coming weeks/months( see my earlier post)and the possible time frame could be between
March to May-2016. However chart has to be viewed on regular basis and any
positive development on the chart can change the interpretation also which may
please be noted, so watch out.
For 17-2-2016 sell below 7021 with a stop loss
of above 7050 and add on position below
6976 with a stop loss of above 7021 for a
target of 6976/ 6869/6825/6787or sell on the rise but not above 7165 as of now with
a stop loss of 7209.
Remark:-It
is in long term bear trend now. In view of key downward reversal today long
call is completely ruled out ,instead short call should be tried as suggested
above.
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.