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

CNX-NIFTY

Closed at 7555.95 on 1-2-2016(Open-789.50/High-7600.45/Low-7541.25)

Support:- 7551.05/7539.50/7422/7402.80/7295/7241.50/7118.45/6868.85/6638.55.

Resistance:- 7563.55/7575.65/7589.50/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It opened with an up gap today but could not sustain at higher level and thereafter moved in a short range and closed the day with a minor loss of 7.59 points. It is still above its short term moving averages and crucial benchmark point of 7539.50 for the entire year of 2016 which is a good sign. The range for 2-2-2016 is between 7590—7539.50 and break on either side will decide the direction for the day. It is therefore suggested to avoid long call below 7539.50 for sure. Today’s down close seems to be corrective move of the previous day’s huge rise and the on-going up move may still continue for some more time provided it holds 7539.50 level on the closing basis.

For 2-2-2016 long call should only be tried if it move and sustain above 7564 but get alerted in trade below 7539.50 and exit long position below 7500 for sure. Moving up it will face resistance at 7608/7654-7694/7724 & 7801. Similarly good support exists at 7539.50/7520/7422/7414/7402.

Remark:-The long term trend is still down. Looking at the short term technical setup the on-going up move may still continue for few more days provided it holds7539.50 on the closing basis but long call should be tried only as suggested above. Please not to forget that it is a pullback rally as of now therefore long trade should be handled with extreme caution and care.   

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.